FX.co ★ Societe Generale expects €1.1 billion fine for violating US sanctions

French investment bank Societe Generale announced that it had set aside 1.2 billion euros to cover penalties related to its dispute with the United States over international sanctions violations.

The punitive measures apply to companies doing business with countries that are subject to US economic sanctions.

The bank said it has 1.43 billion euros set aside to cover the legal penalties, with 1.1 billion euros reserved to settle an investigation by US authorities concerning US dollar transactions processed by Societe Generale for countries under US sanctions.

In June, the bank agreed to pay 1.3 billion dollars to US and French authorities to end the disputes over transactions made with Libyan counterparts and over the suspected manipulation of the Libor benchmark interest rate.