STANDARD CHARTERED PAYS $1 BILLION TO SETTLE SANCTIONS VIOLATIONS
May 28, 2019
Standard Chartered, the London-based multinational bank, agreed to pay more than $1 billion to U.S. and U.K. authorities, to end a five-year investigation into violations of U.S. and U.K. sanctions against Iran. Standard Chartered initially entered into a settlement agreement in 2012 with U.S. federal and state agencies for $660 million for helping Iranian government-backed banks transfer over $250 billion between 2001 and 2007.
The recent settlement addresses more recent violations that were discovered after the 2012 settlement. Investigators discovered that bank employees had processed hundreds of millions of dollars’ worth of transactions through U.S. financial institutions for Iranian businesses and individuals. These transactions took place between 2008 and 2014, and originated in London and Dubai before being sent to its office in New York.
The investigation uncovered evidence that senior bank officials knew of compliance issues, but were slow to address the problems. Nonetheless, regulators noted that the bank improved its controls and cooperated with investigators, and did not dispute the findings.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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