The Bank of New York yesterday confirmed it was the subject of an investigation into claims it was used to launder billions of dollars for Russian organised crime. It said it had suspended two employees pending completion of the investigation. However, officials added that an internal inquiry, "supported by independent review" suggested this was an isolated incident.
Mr Frank Scarangella, a spokesman for the bank, said: "The Bank of New York has been co-operating with the office of the United States Attorney for the Southern District of New York in a confidential investigation of the use of bank facilities to transfer funds from Russia to other countries.
"Two employees of the bank who have been mentioned in the investigation are now on leave pending completion of the investigation."
Allegations that up to $10 billion (€9.41 billion) from Russian organised crime may have flowed through the Bank of New York were first reported in the New York Times yesterday, which said the bank employees suspended were both the wives of Russian businessmen.
The investigation into the bank's accounts highlights efforts by international law enforcement agencies to combat money laundering by criminal organisations. Earlier this week, the Swiss authorities froze several bank accounts following a money laundering investigation requested by the Russian authorities.
Swiss investigators yesterday confirmed they had frozen Russian bank accounts in Switzerland in response to a May 5th request for legal assistance by Russian prosecutors.
The amount frozen was roughly $65 million according to Swiss sources, and is believed to be linked to an investigation into the finances of Mr Boris Berezovsky, the Russian businessman.
Officials at Bank of New York stressed there were no allegations or wrongdoing by the bank, and there had been no loss of funds by customers or the bank itself. By around midday on Wall Street, shares in the bank were down 3.4 per cent.
British law enforcement and intelligence agencies have been passing information about suspect money laundering operations by Russian organised crime for over a year, officials in London confirmed yesterday.
The New York Times reported the bank accounts being scrutinised had been linked to Mr Semyon Mogilevich, a Russian businessman under investigation by law enforcement officials.
