According to the US Justice Department, the financial institution dealt with banks in Iran, Burma, Cuba, Sudan and Libya, all countries which are under sanctions imposed by the US government.
Barclays is believed to have allowed and then concealed details of transactions involving firms in these states between 1995 and 2006.
The court documents stated that payments and transfers assisted by the bank during this period were worth as much as $500 million.
Barclays is expected to pay half of the sum to the office of New Yorkâs district attorney and the other half to the US department of justice.
Earlier in the month, Barclays unveiled its financial figures for its performance during the first half of 2010.
The bankâs pre-tax profits for the second quarter of the year were up by 44 per cent when compared with the same period last year.
Barclays also revealed that it had set aside $194 million during the first half of the year to pay for a potential settlement.
By Jim Ottewill