Standard Chartered to pay $340 million for Iran deals

British bank Standard Chartered has agreed a $340 million settlement with New York regulators that accused it of hiding $250 billion of transactions with Iran.

The hearing that had been scheduled for Wednesday has now been adjourned.

Standard Chartered’s chief executive Peter Sands has been in New York negotiating with the regulators.

It had admitted that some of its transactions did break US sanctions, but said that the amount totaled just $14 million.

“The New York State Department of Financial Services (DFS) and Standard Chartered Bank have reached an agreement to settle the matter raised in the DFS order dated August 6, 2012,” a statement from the regulator’s superintendent said.

“The parties have agreed that the conduct at issue involved transactions of at least $250 billion.”

Standard Chartered has agreed a $340 million settlement with New York regulators that accused it of hiding $250 billion of transactions with Iran

A short statement from Standard Chartered simply confirmed a settlement of $340 million had been reached.

“A formal agreement containing the detailed terms of the settlement is expected to be concluded shortly,” it added.

The bank also said it continued to “engage constructively” with other US authorities.

According to the terms of the settlement, Standard Chartered will pay a “civil penalty” of $340 million to the DFS.

It will also install a monitor for at least two years who will evaluate money-laundering controls at the bank’s New York branch and report directly to the regulator.

“In addition, DFS examiners shall be placed on site at the bank,” the statement said.

Finally, the settlement provided for permanent staff at the bank’s New York office to audit any money-laundering controls.

The $340 million was a “hefty penalty, but nothing like as hefty as it could have been” if the two parties had not negotiated a settlement. The DFS had, for example, talked of revoking Standard Chartered’s New York banking licence.

Last week, New York’s DFS alleged that the US unit of the bank had illegally hidden 60,000 transactions with Iran worth $250 billion over nearly a decade.

It accused the London-based bank of being a “rogue institution” for breaking US sanctions against Iran.

Peter Sands said at the time that he was “completely surprised” by the ferocity of the DFS’s attack, which he described as “disproportionate”.

He did, however, admit that 300 transactions did break US sanctions.

“This was clearly wrong and we are sorry that they happened,” Peter Sands said.

 

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago