Standard Chartered settles US claims over Iranian transactions

11 Sep 2012

The New York State Department of Financial Services (DFS) has announced (http://www.dfs.ny.gov/about/press/pr1208141.htm?intEmailHistoryId=778390&intEmailListId=133&intEmailId=60099&intExternalSystemId=1) that it has reached a settlement with Standard Chartered Bank in relation to allegations that the bank had failed to disclose approximately 60,000 transactions with the Iranian government amounting to at least $250 billion in breach of the US sanctions regime. The bank has agreed to pay a civil penalty of $430 million to DFS and has agreed to install a monitor to evaluate money-laundering risk controls in the New York branch and implementation of appropriate corrective measures for a period of two years. The bank has also agreed to install permanent personnel in its New York branch to oversee and audit any offshore money-laundering due diligence undertaken by the Bank. A preliminary statement setting out DFS’ case against the bank has also been published (http://www.dfs.ny.gov/banking/ea120806.pdf).