Bank of NY may pay $14 mln in money-laundering case

NEW YORK, Oct 20 (Reuters) - Bank of New York Co. on Thursday said it set aside $14 million for an
expected settlement of an investigation by federal prosecutors related to a Russian money-laundering
conspiracy.

The long-running probe by the U.S. Attorney for the Southern District of New York concerns accounts
at the bank once controlled by former bank executive Lucy Edwards, her husband Peter Berlin, and
others.

Bank of New York has said the probe concerns fund transfer activities in some accounts at the bank,
mainly involving wire transfers from Russian and other Eastern Europe sources. The bank had in
August said it received a settlement proposal from the U.S. Attorney.

"We are satisfied with the progress we are making" toward a settlement, said Thomas Renyi, the
bank's chief executive, on a conference call discussing quarterly results.

Higher fees helped push the bank's third-quarter net income up 10 percent to $389 million, or 51
cents per share, a penny more than analysts forecast.

Edwards, a former vice president in the bank's Eastern European division, and Berlin pleaded guilty
in February 2000 to charges that they were part of a conspiracy that moved $7 billion through
accounts at the bank.

They also pleaded guilty to helping two Russian banks conduct illegal activities in the United
States in the scheme.

The bank's main unit, Bank of New York, was founded in 1784 by statesman Alexander Hamilton.

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