Standard Chartered Gets $100 Million Fed Fine for Unsafe Banking

Standard Chartered Pays $327 Million on U.S.-Iran Transfers
London-based Standard Chartered Plc. in August was accused by Benjamin Lawsky, head of the New York Department of Financial Services, of helping Iran launder about $250 billion in violation of federal laws, keeping false records and handling lucrative wire transfers for Iranian clients. Photographer: Simon Dawson/Bloomberg

Standard Chartered Plc was ordered to pay a $100 million penalty for “alleged unsafe and unsound practices,” the Federal Reserve said today.

In separate actions, the U.S. Department of Justice and the District Attorney for New York County announced the execution of deferred prosecution agreements with Standard Chartered, the Fed said.

Those agreements provide for $227 million in forfeitures against Standard Chartered. The Treasury’s Office of Foreign Assets Control announced a settlement of $132 million, according to the Fed.

The Fed’s penalty is “one of the largest penalties” given by the Fed for such practices, the central bank said. The Fed also announced a cease and desist order telling Standard Chartered to “improve its program for compliance with U.S. economic sanctions, Bank Secrecy Act, and anti-money-laundering requirements.”

London-based Standard Chartered agreed in August to pay $340 million to resolve charges brought by the New York state banking regulator that it hid the identity of Iranian customers involved in dollar-clearing transactions.

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