AIB fined by US treasury over Libya deal

AIB’s Allfirst bad luck story continues. Yesterday the bank confirmed it was fined $4,000 for a breach of the US trade embargo with Libya.

The breach was first reported on RTÉ’s on.business.ie website. The details were confirmed by an AIB spokesperson who explained software supplied via the US Treasury’s Office of Foreign Asset Control (OFAC) to detect such breaches failed to discover the transfer of funds of an Allfirst customer into a Libyan account.

The bank would not discuss details of the transfer but it is understood that the amount transferred in 2001 was not significant. Despite the software failure OFAC fined Allfirst $4,000.