Bank of New York will pay $38 million to resolve two criminal investigations by federal prosecutors in Manhattan and in Brooklyn into failures in the bank’s suspicious-activity reporting and antimoney laundering policies, including not adequately monitoring more than $7 billion in Russian money that flowed through the bank, prosecutors said Tuesday.

Bank of New York will pay $38 million to resolve two criminal investigations by federal prosecutors in Manhattan and in Brooklyn into failures in the bank’s suspicious-activity reporting and antimoney laundering policies, including not adequately monitoring more than $7 billion in Russian money that flowed through the bank, prosecutors said Tuesday.

In a press release, the U.S. Attorney’s offices in Brooklyn and in Manhattan announced the New York bank will forfeit $26 million to the government and pay $12 million in restitution to victims. It is one of the largest financial settlements ever by a U.S. financial institution, prosecutors said.

Bank of New York, which has entered a nonprosecution agreement with the government, also will make sweeping internal changes to ensure its compliance with antifraud and antimoney laundering regulations, and will be monitored by an independent examiner.

The bank will avoid prosecution if it fully complies with the terms of the agreement for three years. As part of the agreement, the bank has “accepted responsibility for its criminal conduct,” prosecutors said.

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