Dubai-based Mashreqbank’s agreement to pay US$100 million in penalties for its deliberate omission of payment transactions with ties to Sudan in violation of US sanctions against the African country may serve as a warning to banks with US operations to diligently monitor their correspondent networks.

The UAE’s oldest privately owned bank failed to provide adequate oversight of transactions by customers in high-risk regions, according to statements issued alongside coordinated enforcement actions by the New York State Department of Financial Services (DFS), Federal Reserve and the US treasury’s Office of Foreign Assets Control (OFAC).

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