Standard Chartered will soon commence sifting through data to spot any signs of possible money laundering or other criminality, following detection of faults in the software critical to its anti-money laundering compliance programme, Reuters has reported.
The process of poring through the data will be ‘a huge piece of work’ that could take months, an undisclosed source with knowledge of the matter told the publication.
Two years ago, the Asia-focused bank was fined US$667 million by f New York State’s Department of Financial Services (DFS) for scheming with Iran to hide billions of pounds of transactions from the US authorities.
While announcing its earnings last week, the London-listed bank revealed that it was in discussions with that same regulator, facing further fines and remedial action.
"Certain issues have been identified with respect to the Group’s post-transaction surveillance system, which is part of its anti-money laundering systems and controls," the bank said.
The outcome of the bank’s pending transaction review, known as a ‘look back’, could affect the severity of any penalties imposed by DFS, Reuters reported citing another source with knowledge of the issue.
The bank has done extensive planning for the review with help from an external consultant and is coordinating with the DFS to ensure it approves of the plan, the source added.