In the latest hearing of PricewaterhouseCoopers LLP (PwC) report sanitizing issue for Bank of Tokyo-Mitsubishi UFJ, New York Department of Financial Services issued a fine of $25 million and a 2-year ban on PwC.
According to the New York Department of Financial Services, PwC was accused of thinning out on an anti-money-laundering report, which it did for the Bank of Tokyo-Mitsubishi UFJ. Further, according to Benjamin Lawsky, Superintendant of New York Department of Financial Services, the bank persuaded the accused consultancy to alter a compliance report highlighting its financial transactions with Sudan and Iran in March 2007.
According to Lawsky, “When bank executives pressure a consultant to whitewash a supposedly ’objective’ report to regulators – and the consultant goes along with it – that can strike at the very heart of our system of prudential oversight.” Lawsky and the complete department has been active against consulting firms that help banks associated with regulatory issues.
PwC has agreed to pay the fine and adhere to the ban, which will prevent the firm’s right of consultation for New York banks. Although, PwC is claiming that all the changes were made in accordance with the comments which are provided by the bank and its attorney. Miles Everson, U.S. advisory leader of PwC, said that the complete issue “relates to a single engagement completed more than six years ago in which PwC searched for and identified relevant transactions” in accordance with the information received from the bank.
Prior to this decision, Bank of Tokyo-Mitsubishi UFJ agreed to pay $250 million against its actions that violated U.S. sanctions law in 2013. Bank of Tokyo-Mitsubishi is a part of the Mitsubishi UFJ Financial Group Inc. (8306).
This article has been written by Prakash Pandey and edited by Serkan Unal.
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