November 8, 2005

Bank of New York to pay $38 mln penalty

NEW YORK (Reuters) - Bank of New York Co. on Tuesday agreed
to pay $38 million in penalties to resolve U.S. government
probes into fraud and money laundering surrounding fund
transfers to and from Russia in the 1990s.

Under the agreement, the U.S. attorneys for the Eastern and
Southern Districts of New York said they will not prosecute the

The company "has admitted its criminal conduct" and will
forfeit $26 million to the government and pay $12 million in
restitution to its victims, according to a statement from the
prosecutors' offices.

The bank also has agreed to internal reforms and to be
monitored by an independent examiner, they said.

The company said it had previously set aside funds to cover
the financial penalties.

"We are satisfied that reaching this agreement is in the
best interest of our company and all of our constituents,"
Chairman and Chief Executive Thomas Renyi said in a statement.