Israel Discount Bank of New York has agreed to pay up to $25 million to settle state and federal claims that it allowed illegal Brazilian money transmitters to move $2.2 billion through its offices over the past five years.
The IDB account of an illegal Brazilian money transmitter, Transmar Tourismo Ltda., was frozen in New York, Assistant District Attorney Daniel Castleman said Friday in announcing the agreement. Castleman said the account contained $158,000.
Based on evidence gathered in New York, Castleman said, Brazilian police executed search warrants at Transmar's Sao Paulo offices, seized records, and arrested three of its employees on charges of violating Brazilian money laundering and other laws.
Castleman said it was unclear whether the three could be prosecuted in New York.
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