Standard Chartered have agreed to pay $340m to
the New York financial regulator which accused the bank of
concealing at least $250bn of transactions with Iran.
The New York Department of Financial Services
(DFS) launched an attack on the bank this month, releasing an order
on 6 August 2012 which claimed that Standard Chartered had
conspired with the Government of Iran to launder money in exchange
for millions of dollars in fees.
It added that the activity had allegedly
lasted for almost ten years and involved approximately 60,000
hidden transactions to Iranian financial institutions.
The hearing scheduled for 15 August where
Standard Chartered was due to face the allegations has been
AML monitors installed
As part of the settlement, the UK-based bank
has also agreed to permanently install staff for at least two years
to report directly to the DFS.
The monitors will evaluate the
money-laundering risk controls in the New York branch and
implementation of appropriate corrective measures.
“The group continues to engage
constructively with the other relevant US authorities. The timing
of any resolution will be communicated in due course,” Standard
Chartered said in a statement.