US fines Italian lender UniCredit $1.3 billion in sanctions probe

Unicredit’s German subsidiary, UniCredit Bank, agreed to plead guilty in US federal court to sanctions violations involving Iran. (AFP)
Updated 16 April 2019

US fines Italian lender UniCredit $1.3 billion in sanctions probe

  • UniCredit operates in several European countries
  • Its German subsidiary, UniCredit Bank, agreed to plead guilty in US federal court to sanctions violations involving Iran

MILAN: Italian bank UniCredit will pay $1.3 billion (€1.5 billion) to settle charges by the US government that it violated sanctions against Iran and other countries.
UniCredit, which operates in several European countries, said Tuesday that its German subsidiary, UniCredit Bank, agreed to plead guilty in US federal court to sanctions violations involving Iran.
A US Depart of Treasury statement said the fine resolves an investigation by its foreign assets control office into violations of US sanctions, including related to the proliferation of weapons of mass destruction.
It cited the processing of over $500 million in payments in 2,000 operations from 2007 to 2011, a period during which UniCredit operated a US-dollar account for the Iranian state-owned shipping company.
UniCredit said it had booked provisions beyond the settlement.


Saudi finance minister reassures public on taxes

Updated 10 December 2019

Saudi finance minister reassures public on taxes

  • Mohammed Al-Jadaan: There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully
  • The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year

RIYADH: Saudi finance minister Mohammed Al-Jadaan pledged that there would be no more taxes or fees introduced in the Kingdom until the social and economic impact of such a move had been fully reviewed.

He was speaking at the 2020 Budget Meeting Sessions, organized by the Ministry of Finance and held in Riyadh on Tuesday, where a number of ministers and senior officials gathered following the publication of the budget on Monday evening.

“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” said Al-Jadaan.

The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year and more than 10 percent higher than the expected budget for this year. 

Most of that increase has come from taxes on goods and services which rose substantially as a result of the improvement in economic activity over the year.

The reassurances from the minister come as the Saudi budget deficit is estimated to widen to about SR187 billion, next year, or about 6.4 percent of GDP.