Oh they fit the vermin perfectly.
On 6 August 2012, the
New York Department of Financial Services (DFS), led by
Benjamin Lawsky, accused Standard Chartered of hiding $250 billion in transactions involving Iran, labelling it a "rogue institution". The bank was ordered to appear and defend its actions, or risk losing its license to operate in the state of
New York. The DFS said it had documents showing a cover up of transactions allegedly used to fund terrorist groups in the Middle East.
[47]
On 14 August 2012, Lawsky announced that the DFS and Standard Chartered reached a settlement that allows the bank to keep its licence to operate in New York. According to the terms of the settlement, the bank agreed to pay a
$ 340 million fine.
[48]
The bank agreed to install a monitor to oversee the bank's money laundering controls for at least two years, and appoint "permanent officials who will audit the bank's internal procedures to prevent offshore money laundering".
[48] The monitor will report directly to the DFS.
[49] Lawsky's statement said "the parties have agreed that the conduct at issue involved transactions of at least
$250bn."
[50] The bank issued a statement confirming that a settlement with the DFS had been reached and that "a formal agreement containing the detailed terms of the settlement is expected to be concluded shortly".
[50]
Other US agencies—including the
Federal Reserve, the
Federal Bureau of Investigation, the
Treasury Department, and the
Justice Department—had also begun investigations into the laundering allegations and were reportedly taken off guard by the speed of the settlement.
[48]
The Treasury stated that its own investigation of Standard Chartered will continue.
[51] Several financial analysts predicted that, due to its strong financial position, the bank would be able to easily cover the
$900 million fine without having to raise extra capital.
[51]
On 6 August 2014 Lawsky was reported to be preparing a new action against Standard Chartered over computer system breakdowns and was "discussing a potential settlement".
[52]
On 19 August 2014, the bank was fined $300 million by the
New York Department of Financial Services for breach of money-laundering compliance related to potentially high-risk transactions involving Standard Chartered clients in Hong Kong and the UAE. The bank issued a statement accepting responsibility and regretting the deficiencies, at the same time noting the ruling would not jeopardize its U.S. licenses.
