...Especially Given BoNY's History in Money Laundering and Terrorist Financing
By Andrew Cochran
The Bank of New York's activities on behalf of LeT and IKK, as discussed in Evan Kohlmann's post, are inexplicable in light of its history of involvement with Russian money launderers and the Arab Bank. Just nine days ago, BoNY admitted to continued insufficient controls over money laundering, in violation of a 2000 agreement with the Federal Reserve and State of New York, arising from a celebrated Russian money laundering scheme. That agreement cost it $38 million in penalties. BoNY (along with other major NYC banks) has recently been pressured by the Treasury Department to cut certain corrrespondent banking ties, especially since Hamas on the PA elections, and BoNY ended a long-standing relationship with the Arab Bank after that bank was fined for funneling deposits to terrorists and closed its NYC office.
I'm mystified that an institution with BoNY's history would repeatedly jeopardize its reputation this way.
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