On 18 August, New York’s DFS announced a settlement with PricewaterhouseCoopers Regulatory Advisory Services (“PwC”), under which PwC will pay a $25 million penalty and be suspended for 24 months from accepting new engagements with DFS-regulated financial institutions.  PwC also agreed to implement reforms to its procedures to avoid conflicts of interest.

The settlement relates to a report to DFS that PwC had prepared in June 2008 regarding Bank of Tokyo Mitsubishi’s alleged violations of US sanctions laws. Although PwC’s report was ostensibly acting as an independent consultant, DFS later learned that PwC had altered the report by removing potentially damaging sections from the report at the bank’s request.  PwC’s report was the cornerstone for the DFS’ June 2013 consent order with the bank regarding the bank’s alleged violations of US sanctions.

NYDFS Press Release