Standard Chartered signs $340 million penalty agreement with NY regulator
September 22 , 2012
Standard Chartered Bank signed an agreement with New York's banking regulator on Friday to pay $340 million to settle allegations that it hid transactions with Iran from regulators.
The London-based bank had agreed in principle to pay the civil penalty last month following threats to revoke the bank's license in New York after it was accused of falsifying Swift wire payment directions by wiping out the message of unwanted data that showed the clients were Iranian
An investigation into Standard Chartered's practices is nearly completed and a joint settlement with other New York and U.S. authorities is expected to be reached in the next few weeks, according to a person familiar with the matter.
"We are pleased to have reached a final settlement with the Department of Financial Services, and we look forward to resolving all outstanding issues with other U.S. authorities related to our past sanctions compliance," said a spokesperson for Standard Chartered in New York.
In addition to the $340 million payment, Standard Chartered has agreed to install an external monitor for two years and hire an anti-money laundering auditor at its New York branch.