British bank Lloyds TSB is to take a £180m hit in the first half of this year as it nears a settlement with US authorities over payments to 'blacklisted' countries, including Iran and Cuba.
US authorities have for months been investigating several large European banks over violations of sanctions against countries named by the US as sponsors of terrorism, including Iran, Libya and Sudan.
In a statement filed with its 2007 annual report to US authorities, Lloyds said it was providing information to the Office of Foreign Assets Control, the US Department of Justice and the New York County District Attorney's Office over 'certain historic US dollar payments'.
The bank said that it was involved in 'ongoing discussions', adding that the talks had advanced towards a settlement. It said it did not expect the final payment to have a big effect on its financial position.
