Tuesday 27th September 2016                 Change text size:

Standard Chartered set to pay $300 million settlement over illegal money laundering practices



Standard Chartered another fine - Erwin Soo via Flickr

A settlement deal between the UK bank Standard Chartered and Benjamin Lawsky, head of New York’s Department of Financial Services has been outlined due to the banks failure to prevent continued money laundering activities.

After previous allegations, Lawsky took $340 million (£240m) from the London based bank to set up an independent monitor of Standard Chartered’s activities, ensuring the bank did not repeat breaking the law.

However, findings from the monitor have suggested a continued failing in the bank’s ability to police itself against criminal activity, even after pledging to improve its controls.

Chief executive Peter Sands has confirmed the two firms were still in ongoing talks regarding a settlement, which has been centred on “certain issues with respect to the group’s post-transaction surveillance systems and money laundering controls”.

The settlement will range between $200 million (£120m) and $300 million (£180m), as well as finalising a date regarding the monitoring of the banks activities.

The bank currently retains software that is meant to flag suspicious transactions. However, the computer software has failed to highlight “millions” of possibly criminal transactions, placing increased pressure on the bank.

Shareholders have apparently expressed concern over the business’ leadership and demand for a successor to be named inspired an unprecedented stock exchange announcement by Sir John Peace trying to promote solidarity behind Sands.

The bank has previously incurred the wrath of American regulators as it failed to control its finances. Furthermore, the attempted hiding of financial links to Iran from US authorities led to another fine and a renewed investigation.

Photo source: Erwin Soo via Flickr

Further Reading:

Standard Chartered faces more fines from US regulator

Osborne to unveil tougher action for wrongdoing in financial sector

Bankers could face tougher regulation, including bonus clawback

Has your bank been naughty or nice in 2013?

Banking regulator deals Lloyds record £28m fine for irresponsible sales culture


There are currently no comments.

Register with Blue and Green

To leave a comment on this article, fill in your details below to register, alternatively if you are already registered you can login here







Subscribe for our Newsletter

Time limit is exhausted. Please reload CAPTCHA.

A password will be e-mailed to you.