View more on these topics

Standard Chartered agrees £217m settlement with US regulators


Standard Chartered has agreed to pay £217m to New York regulators to settle claims of alleged money laundering with Iran.

The bank’s shares dropped as much as 24 per cent at one stage last week after the New York State Department of Financial Services accused the bank of hiding £160bn in transactions linked to Iran, which violates US law. The bank had been threatened that its US banking licence may be revoked.

The US regulator added that the bank had hidden as many as 60,000 transactions for “Iranian financial institutions” that were subject to economic sanctions.

Commenting on the agreement, the US regulator said: “The New York State Department of Financial Services and Standard Chartered Bank have reached an agreement to settle the matter raised in the DFS order dated 6 August, 2012,”

“The parties have agreed that the conduct at issue involved transactions of at least £160bn.”

Standard Chartered said a formal agreement containing the detailed terms of the settlement is expected to be concluded shortly. The bank said it continued to “engage constructively” with the US authorities and that New York Department of Financial Services examiners shall be placed on site at the bank.

Investigations by other US authorities will not be prevented by the settlement.

Standard Chartered shares have bounced back strongly following the news. In the UK, shares were up 3 per cent at 8.20 BST. While shares rose 5.8 per cent in Hong Kong.


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. If one considers that this was a pretty serious offence, then this fine is hardly even a slap on the wrist. Standard Chartered Profit for 2011 was £4,933 million so this fine represents 4.4% of the profit.

    If you compare it to the £160 billion involved then that equates to o.13%.

    As ever on both sides of the Atlantic, it would seem there is one set of regulations for the big boys and one for the small fry. If ever I get fined for something as serious as this 4.4% of my profit would be a pleasant relief.

    Indeed I’ll bet that all those involved with Arch Cru and Key Date would be rushing for their cheque books if that was the level they were expected to stump up.

  2. It is pretty small, but it’s only the fine from New York DFS. With other investigations ongoing they could end up with additional, much more serious fines and sanctions.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm