Standard Chartered faces Treasury fine over sanctions breaches
19 Aug 2019

The Treasury is to slap Standard Chartered, the emerging markets lender, with a multimillion-pound fine for failing to prevent sanctions breaches, dealing a further blow to the FTSE-100 bank’s reputation.

Sky News has learnt that the Office of Financial Sanctions Implementation (OFSI) has notified Standard Chartered that it intends to impose a penalty of more than £10m in the coming weeks.

The fine, which is subject to a possible appeal process, will add to the pressure on the company’s board, which has found itself embroiled in a row with leading investors over its chief executive’s pay package.

A City source said this weekend that Standard Chartered, which is the main sponsor of last year’s Premier League runners-up, Liverpool, was expected to appeal against the OFSI fine.

One source close to the bank’s board pointed‎ out that the proposed OFSI fine, while reputationally serious, would be immaterial in financial terms.

The bank has already been hit this year by penalties totalling more than £800m from regulators in London and New York for violating sanctions against Iran.

OFSI, which sits within the Treasury‎, has a relatively low profile even within Whitehall.

Its track record of financial penalties is limited, with two fines of £5000 and £10,000 respectively having been levied on the private bank Raphael & Sons and Travelex, the foreign exchange provider, earlier this year.

Details of the specific reasons underpinning OFSI’s decision to fine Standard Chartered or the calculation of the £10m-plus penalty, were unclear this weekend.

By Mark Kleinman, Sky News, 17 August 2019

Read more at Sky News

Photo (cropped): Cobaltblue25 [CC BY-SA 4.0], via Wikimedia Commons

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