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August 22, 2014
Global accounting and audit firm PricewaterhouseCoopers got slapped with fines and suspensions this week for improperly making edits in a report sent to New York’s top banking regulators on behalf of a foreign client.
International accounting and audit titan PricewaterhouseCoopers received a $25 million dollar fine from the New York Department of Financial Services earlier this week after being found guilty of inappropriately altering the language in a report submitted on the behalf of an international client. The Bank of Tokyo Mitsubishi had initially revealed the occurrence of wire transfers conducted with countries currently under U.S. economic sanctions, including Iran. After being pressured by the Japanese client, PwC edited language in their initial report so that the sanctions violations would be less noticeable to banking regulators.
“We are continuing to find examples of improper influence and misconduct in the bank consulting industry,” said Benjamin Lawsky, New York’s Superintendent of Financial Services, regarding the department’s ruling. PwC was also suspended from doing any consulting work for banks that are regulated by the department for a full two years.
In defense of his firm’s actions, PwC’s Miles Everson asserted that the report in question had both been “detailed” and “disclosed the relevant facts.” Everson also added that “PwC is proud of its long history of contributing to the safety and soundness of the financial system by serving as subject matter experts in banking regulatory and compliance matters and the firm is committed to improving continuously and meeting changes in regulatory expectations. This resolution reinforces that commitment.”
Source: USA Today Money
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