Standard Chartered has seen its shares plunge following allegations of a £160bn money laundering scheme involving Iran.
At 11.47, the banks shares stood at 1116p a fall of 24.1 per cent from its opening price. The bank’s Hong Kong listed shares fell by more than 20 per cent on Tuesday after the New York State Department of Financial Services said the UK bank laundered as much as £160bn with Iran over the past decade.
The US regulator added that it believes the bank has hidden as many as 60,000 transactions for “Iranian financial institutions” that were subject to economic sanctions.
The New York State Department of Financial Services labelled the UK bank a “rogue” institution and asked it to explains the “apparent violations of law” between 2001 and 2010. It has also said it will hold a formal hearing over potential monetary penalties with potential for the bank also to have its US license revoked.
Standard Chartered has denied the claims stating it “strongly rejects the position and portrayal of the facts” by the regulator adding that the claims made by it do not make “a full an accurate picture of the facts”.
The bank says it conducted a review of its transactions, particularly those relating to Iran for the period between 2001 to 2007 with regular updates on the investigation given to US authorities
“As we have disclosed to the authorities, well over 99.9 per cent of the transactions relating to Iran complied with U-turn regulations,” the bank says.
“The total value of transactions which did not follow the U-turn was under £9m.”
Last month, Mexican regulators fined HSBC £17.7m for its failure to comply with money laundering regulations.
The Mexico National Banking and Securities Commission said it had imposed the fine against HSBC over “non compliance with anti-money laundering systems and controls”.