Daily Management Review

Standard Chartered Under ‘$1.1 billion’ Penalty For Violating Sanctions


04/29/2019


An investigation on Standard Chartered found the bank breaching sanctions and lined up penalties in the form of “fines and forfeitures”.



Source: commons.wikimedia.org; (CC BY-SA 3.0)
Source: commons.wikimedia.org; (CC BY-SA 3.0)
As per the announcements made by the government authorities, the Standard Chartered Plc has consented in paying a sum of “$1.1 billion” to the authorities of Britain as well as the U.S. for carrying out “illegal financial transactions”, whereby violating the sanctions imposed on Iran and other countries.
 
The said settlement happens to be among the “most severe” ones against the sanctions violations, while in the year of 2012, the Standard Chartered had “settled similar charges”. Reuters quoted a statement by the group’s Chief Executive, Bill Winters which said:
“‘The circumstances that led to today’s resolutions are completely unacceptable’ and ‘not representative’ of the bank today”.
 
The said settlement is an extension of two years’ “deferred prosecution agreement” which the bank originally agreed upon in the year of 2012. In the words of the Attorney Jessie Liu from “Washington, D.C., U.S.”, Standard Chartered “undermined the integrity of our financial system and harmed our national security by deliberately providing Iranians with coveted access to the U.S. economy”.
 
The agreements were at the resolving end of an investigation which started nearly five years ago to probe into Standard Chartered operations in Dubai for “Iran-controlled entities”. According to Reuters:
“The bank paid U.S. authorities $667 million in 2012 for illegally moving millions of dollars through the U.S. financial system on behalf of customers in Iran, Sudan, Libya and Myanmar, some of the same countries involved in the latest settlement.
“In 2014, it paid another $300 million to the New York’s Department of Financial Services after a monitor uncovered shortcomings in the bank’s surveillance systems”.
 
As per a statement from Standard Chartered, the banking institution has taken responsibility of violating sanction which was carried out till 2014, while the bank also noted about its cooperation in the investigation process. In a recent turn of event, the “U.S. Department of Justice, the U.S. Department of Treasury’s Office of Foreign Assets Control, the New York County District Attorney’s Office, the New York State Department of Financial Services (DFS), and Britain’s Financial Conduct Authority (FCA)” have lined up penalties in the form of “fines and forfeitures”.
 
The authorities of the U.S. are to get a penalty amount of “$928 million”, while the FCA will be getting another “102 million pound”, which is equivalent to “$133 million” on the charge of “control failure”.
 
References:
reuters.com







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