A unit from PricewaterhouseCoopers LLP (PwC) will be paying $25 million and be immediately suspended from some consultation work for a couple years to sort out claims that the company made report alterations on a Japan-based bank’s anti-money-laundering law compliance.
Regular advisory services unit from PwC will be suspended from several new consultations of NY-regulated banks. The firm also made an agreement to deploy a number of changes to its processes to address conflicts of interest, reports the state financial regulator.
The regulator claims that PwC, who have been pressured by executives from the bank, watered down a report in 2008 to regulators regarding wire transfers that the Bank of Tokyo-Mitsubishi transacted on behalf of Iran and other nations subjected to U.S. economic sanctions. It’s been reported by the New York Times and The Wall Street Journal that a settlement has been reached early this week.
PwC indicated in the settlement that their work for the Bank of Tokyo-Mitsubishi never enacted objectivity and autonomy needed as required by the consultants, who work for NY-regulated banks.