Sullivan & Cromwell has advised Barclays on its $298m (£190m) settlement with US authorities after the bank was charged with violating economic sanctions in dealings with countries including Iran, Cuba and Libya, reports The National Law Journal.

The US Justice Department alleged that Barclays "knowingly and willfully" facilitated US dollar transactions "for a number of parties and countries" that are sanctioned by the US Government, with the allegations spanning from March 1995 to September 2006.

Prosecutors allege Barclays hid payments from countries that face sanctions. Banks from Cuba, Iran, Libya, Sudan and Burma asked Barclays "not to mention their names in US dollar payment messages sent to Barclays' branch in New York," according to court records. Prosecutors claimed that the payments should have been held for investigation, rejected or blocked.

Charges were filed on Monday (16 August) in the US District Court for the District of Columbia. Lawyers for Barclays met with Justice Department prosecutors on Monday afternoon in Washington federal district court.

In May 2006 Barclays voluntarily disclosed to the US government four transactions that violated US sanctions. In November 2006, Barclays ended all US dollar relationships with banks subject to US economic sanctions. Federal and state prosecutors contacted the bank in 2007, and Barclays agreed to cooperate.

According to the agreement, Barclays' head of compliance and regulatory affairs must certify by 6 April 2011 that the bank has completed comprehensive training on policy regarding US, United Nations and European Union sanctions for all employees who are involved in the processing of US dollar payments.

The National Law Journal is a US affiliate sister title of Legal Week.