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. Last Updated: 07/27/2016

Bank of New York Seeks $14M Settlement

bloombergThomas Renyi
NEW YORK -- Bank of New York Co. on Thursday said that it had set aside $14 million for an expected settlement of an investigation by federal prosecutors related to a broader Russian money-laundering conspiracy.

The long-running probe by the U.S. Attorney for the Southern District of New York concerns accounts at the bank once controlled by former bank executive Lucy Edwards; her husband, Peter Berlin; and others.

Bank of New York has said the probe concerns fund transfer activities in some accounts at the bank, mainly involving wire transfers from Russian and other Eastern Europe sources. The bank had in August said it received a settlement proposal from the U.S. Attorney. Bank of New York itself has not been accused of money laundering.

"We are satisfied with the progress we are making" toward a settlement, said Thomas Renyi, the bank's chief executive, on a conference call discussing quarterly results.

Higher fees helped push the bank's third-quarter net income up 10 percent to $389 million, or 51 cents per share, a penny more than analysts forecast.

Edwards, a former vice president in the bank's Eastern European division, and Berlin pleaded guilty in February 2000 to charges that they were part of a conspiracy that moved $7 billion through accounts at the bank.

They also pleaded guilty to helping two Russian banks conduct illegal activities in the United States in the scheme.