New York State authorities are poised to impose a $250 million fine on the Bank of Tokyo-Mitsubishi UFJ over claims that the bank, Japan’s largest by assets, transferred illicit funds on behalf of Iran and other countries blacklisted from doing business in the United States, according to people briefed on the case.
The bank, which settled the case with New York’s financial regulator, Benjamin M. Lawsky, was accused of routing 28,000 payments worth about $100 billion through its New York branches from 2002 to 2007. To avoid detection, Mr. Lawsky is expected to contend, the bank stripped information from the wire transfers that could have exposed the identity of the Iranian entities.
In addition to Iran, the bank is thought to have had dealings with Sudan and Myanmar. At the time, those countries were all operating under United States sanctions.
A spokesman for the Bank of Tokyo Mitsubishi was not immediately available for comment. The bank, according to the people briefed on the case,is thought to have voluntarily alerted regulators to its activity.
The action, which is expected to be announced on Thursday, is Mr. Lawsky’s latest attack on foreign banks that enable sanctioned countries like Iran to tap into the American financial system. In August, Mr. Lawsky struck a $340 million pact with the British bank Standard Chartered, which he accused of transferring hundreds of billions of dollars in tainted money for Iran and lying to regulators.
The case became a source of tension between Mr. Lawsky and federal authorities, who were slower to act against the bank. In December, federal regulators and prosecutors reached their own deal with the bank.
His aggressive style - and rare decision to act alone - inspired comparisons to Eliot L. Spitzer. Mr. Spitzer, during his tenure as New York’s attorney general, similarly received praise and criticism for his tough tactics on Wall Street and his tendency to muscle aside federal authorities.
It is unclear whether ! Mr. Lawsky has once again run ahead of his federal counterparts. Federal authorities have not given any indication that they are investigating the Bank of Tokyo Mitsubishi.
A spokesman for Mr. Lawsky declined to comment.
