A federal court has blocked the US bank from making a loan in Canada, and has ruled that Canada must pay back the $4.5 million the bank was owed for its alleged role in an international drug trade.
The Federal Court of Canada ruled Friday that the Canadian-based Bank of Montreal is entitled to a refund from the US Department of Justice for the US government’s seizure of the bank’s Canadian subsidiary.
The case is the latest in a string of court rulings by the Trump administration to shut down foreign banks.
The Trump administration has imposed an annual US$50,000 penalty on any bank in the United States that does business with Iran.
The Bank of Canada has said it has already spent millions of dollars to defend itself against the charges.