StanChart agrees NY settlement over Iran
Source: Agencies |
August 16, 2012, Thursday
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Print Edition
Print Edition
A BRITISH bank accused of scheming with the Iranian government to launder billions of dollars will be subject to two years of monitoring at its New York branch and will permanently install personnel to oversee and audit offshore monitoring as part of a US$340 million settlement with regulators.
New York state's banking regulator Benjamin Lawsky said on Tuesday that Standard Chartered Bank will pay the civil penalty to the state and will strengthen oversight of overseas transactions. Standard Chartered spokeswoman Julie Gibson said a formal agreement with details was expected soon.
A hearing on the issue scheduled for yesterday has been adjourned. The United States federal government still could take action. Federal Reserve spokeswoman Barbara Hagenbaugh said the Fed "continues to work with the other agencies on a comprehensive resolution."
Several other non-US banks with operations in the US have settled sanctions cases with authorities in recent years. Dutch bank ING Bank NV agreed in June to pay US$619 million to settle charges that it secretly moved billions of dollars through the US financial system on behalf of Iranian and Cuban customers.
Standard Chartered said on Monday that it "strongly rejects" and "contests" the New York regulators' portrayal of its transactions with Iranian banks.
Lawsky earlier had signed an order that required the London-based bank to answer his questions following a probe into the practice of removing crucial identifiers in financial transactions, called wire stripping.
The state agency called the bank a rogue institution and quoted one of its executives as saying: "You (expletive) Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians."
The bank conspired with its Iranian clients to route nearly US$60,000 payments through its New York branch "after first stripping information from wire transfer messages used to identify sanctioned countries, individuals and entities," according to the agency's order.
The bank's statement said "well over 99.9 percent" of the questioned transactions with Iran complied with all regulations.
New York state's banking regulator Benjamin Lawsky said on Tuesday that Standard Chartered Bank will pay the civil penalty to the state and will strengthen oversight of overseas transactions. Standard Chartered spokeswoman Julie Gibson said a formal agreement with details was expected soon.
A hearing on the issue scheduled for yesterday has been adjourned. The United States federal government still could take action. Federal Reserve spokeswoman Barbara Hagenbaugh said the Fed "continues to work with the other agencies on a comprehensive resolution."
Several other non-US banks with operations in the US have settled sanctions cases with authorities in recent years. Dutch bank ING Bank NV agreed in June to pay US$619 million to settle charges that it secretly moved billions of dollars through the US financial system on behalf of Iranian and Cuban customers.
Standard Chartered said on Monday that it "strongly rejects" and "contests" the New York regulators' portrayal of its transactions with Iranian banks.
Lawsky earlier had signed an order that required the London-based bank to answer his questions following a probe into the practice of removing crucial identifiers in financial transactions, called wire stripping.
The state agency called the bank a rogue institution and quoted one of its executives as saying: "You (expletive) Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians."
The bank conspired with its Iranian clients to route nearly US$60,000 payments through its New York branch "after first stripping information from wire transfer messages used to identify sanctioned countries, individuals and entities," according to the agency's order.
The bank's statement said "well over 99.9 percent" of the questioned transactions with Iran complied with all regulations.
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