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Standard Chartered’s Controversial $340 Million Settlement Sets Unwelcome Precedent for Banks
By Brian Monroe and Colby Adams
printNew York's $340 million sanctions settlement with Standard Chartered Plc will likely serve as a model for similar compliance-related agreements, even as it deters some banks from obtaining state licenses. The New York State Department of Financial Services (NYSDFS) disclosed the agreement Tuesday, eight days after accusing the London-based bank in an order of violating state rules and federal sanctions laws by intentionally misleading U.S. regulators about the transactions it processes for Iranians. As part of the settlement, Standard Chartered Bank (SCB) agreed to bolster its compliance staff, work with onsite state examiners and install a monitor, the regulator said....
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This time last December, one might reasonably have expected that 2014 would be a year of modest changes for the anti-money laundering and sanctions compliance sector. Then came JPMorgan Chase, BNP Paribas and a convoy of Russian tanks to quash that notion.
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