Standard Chartered fined $1.1bn for money-laundering and sanctions breaches
The British bank has agreed to pay $947m to American authorities over allegations that it violated sanctions imposed against Burma, Zimbabwe, Cuba, Soudan, Syria and Iran.
Separately, it was fined £102m by UK’s Financial Conduct Authority (FCA) for anti-money-laundering breaches that included “shortcomings” in its counter-terrorism finance controls in the Middle East. It is the second-largest fine ever imposed by the FCA for anti-money-laundering (AML) failures.
The US treasury department said Standard Chartered processed transactions worth $438m from 2009 to 2014, which mostly involved Iran-linked accounts from its Dubai branch routing payments through, or to, US-based branch or other banks.
The threat of major fines have hung over Standard Chartered since 2012, when it went into a deferred prosecution agreement (DPA) with the US Department of Justice and the New York county district attorney’s office over Iranian sanctions breaches beyond 2007.
The DPA was supposed to expire on Wednesday, but has now been extended until April 2021. This means that Standard Chartered will effectively be on probation, monitored by US agencies who will be able to criminally prosecute the bank if it breaks the law.
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Date: 15th April 2019