Sanctions: Standard Chartered’s New York compliance monitorship programme ends
29 Nov 2018

A New York Department of Financial Services (DFS) programme to monitor Standard Chartered over its compliance failings will conclude next month.

The bank’s monitorship, which was appointed by the DFS, will expire on 31 December 2018 after it was deemed to have demonstrated a ‘commitment’ to complying with anti-financial crime rules.

The bank said it had also substantially remediated and enhanced its Bank Secrecy Act/anti-money laundering compliance program.

“The Group is pleased that the DFS has acknowledged the Bank’s progress in remediating and improving its financial crime controls to the point that a monitor is no longer necessary,” Standard Chartered said, “the Group and the Bank remain committed to completing the remaining tasks necessary for that remediation.”

In 2012 StanChart entered into a Consent Order regarding dealing with blacklisted Iran, which was eventually extended to 31 December 2018.

In 2014 it entered into another Consent Order, this time over poor anti-money laundering controls in its systems.

The termination is not the end of the lender’s troubles – it could pay US authorities as much as $1.5 billion regarding a separate probe into violating sanctions.

On Wednesday it said, however, that the termination of its Consent Order will not affect the status of the investigation.

Read more:

Standard Chartered faces ‘substantial’ UK fine over poor financial crime controls

JP Morgan fined $5 million over sanctions violation

HSBC compliance exec under investigation by UK regulator

Photo: Standard Chartered Bank

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