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Home > Regulation > UK Regulation

Standard Chartered agrees £217m settlement with US regulator

External monitors will take up positions at the bank’s New York branch to ensure proper money-laundering checks are carried out.

By Michael Trudeau | Published Aug 15, 2012 | comments

Standard Chartered bank will pay $340m (£216.7m) in settlement to the New York State Department of Financial Services after failing to carry out adequate anti-money laundering checks and illegally doing business with Iran.

According to a statement by Benjamin Lawsky, New York superintendent of Financial Services, Standard Chartered will also install a monitor for at least two years, reporting directly to the DFS and evaluating the bank’s money-laundering risk controls.

The monitor will have the power to implement corrective measures if necessary, and other DFS examiners will be placed on-site at the bank’s New York branch.

As part of the settlement agreement, Standard Chartered will also permanently install staff to oversee and audit offshore money-laundering due diligence by the bank.

Because the bank has settled with the American regulator, a hearing scheduled for today (15 August) has been adjourned. However, Mr Lawsky said the DFS “will continue to work with our federal and state partners on this matter”.

Earlier this month, Standard Chartered hit back at the regulator’s claims that it hid transactions with Iran and left the US financial system vulnerable to terrorists.

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