Standard Chartered Settles Sanctions, AML Violations for $1.08bn
10 Apr 2019

London-based Standard Chartered Bank will pay $1.08 billion to settle sanctions and anti-money laundering violations uncovered by US and UK investigators in a deal that will extend its deferred prosecution agreement through April 2021.

Of that its total monetary outlay, $947 million will go to resolve investigations by the US Justice Department, the Manhattan District Attorney’s Office, the New York State Department of Financial Services (NYDFS) and the Federal Reserve Board. The US regulators have accused the bank of willfully violating sanctions against Iran.

The remaining sum, or roughly £102 million, will settle anti-money laundering (AML) breaches identified by the UK Financial Conduct Authority, marking the second largest monetary penalty ever imposed by the supervisory agency for AML failures.

“The circumstances that led to today’s resolutions are completely unacceptable and not representative of the Standard Chartered I am proud to lead today,” said the institution’s Group Chief Executive Bill Winters, in a statement. “We do not tolerate misconduct or lax controls and we will continue to root out any issues that threaten the trust we have built over more than 160 years.”

The global settlements follows $667 million paid by the bank in 2012 to resolve related monetary penalties and forfeitures, as well as the bank’s agreement to work under the supervision of a court-appointed compliance monitor–a remedial step not extended by Tuesday’s agreement.

“While Standard Chartered has taken significant remedial measures since 2014 to develop a more robust program to prevent these egregious activities, the time has come for the bank to finish the job,” said NYDFS Acting Superintendent Linda Lacewell, in a statement.

Photo: Atamari [CC BY-SA 3.0], via Wikimedia Commons

Read more:

Closer Look: Standard Chartered’s $1.1 Billion Settlement

DOJ: Standard Chartered Bank Admits to Illegally Processing Transactions in Violation of Iranian Sanctions and Agrees to Pay More Than $1 Billion

FCA: FCA fines Standard Chartered Bank £102.2 million for poor AML controls

OFAC: Settlement Agreement between the U.S. Department of the Treasury’s Office of Foreign Assets Control and Standard Chartered Bank

Manhattan District Attorney: DA Vance, Department of Financial Services to Deliver $427 Million to New York City and State Following Investigation of Standard Chartered Bank

 

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