US Federal Reserve fines Swiss bank $100m for sending cash to Cuba

Campaign News | Tuesday, 11 May 2004

Bush regime is stepping up pressure on allies

WASHINGTON May 11 - The US Federal Reserve has fined Switzerland's largest bank, UBS AG, $100 million for allegedly sending dollars to Cuba and other countries subject to US sanctions.

UBS operated a trading centre for dollars in its Zurich headquarters under contract with the Federal Reserve of New York, to help the circulation of new US notes and the retirement of old ones. One condition was that the Swiss bank not deliver or accept dollar notes through the depot to or from banks in countries that are under US trade sanctions.

In an announcement, the Federal Reserve said that UBS had violated the agreement and that some former bank officers and employees, whom it did not name, concealed the transactions by falsifying UBS' monthly reports to the US central bank.

The individuals were not part of the order issued Monday, in which UBS agreed to pay a $100 million civil fine without admitting to the allegations.

The bank said that some employees have been dismissed and disciplinary measures were taken against others.

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