AML: Standard Chartered Settles Case with US RegulatorsMay 2019
On the 9th
April 2019, it was announced that Standard Chartered had agreed to pay $1.1
billion to settle allegations by authorities in the United States and Britain
that it violated money-laundering legislation and acted in breach of economic
The Treasury and
Department of Justice as well as New York State regulators and prosecutors,
said that Standard Chartered had processed hundreds of millions of dollars in
transactions over a number of years from countries subject to financial sanctions.
These included Myanmar, Cuba, Iran, Sudan and Syria.
The bank has also been
hit with a £102m fine by the Financial Conduct Authority (FCA). The FCA found
"serious and sustained shortcomings" in Standard Chartered's
anti-money laundering controls.
The penalties all
arise from investigations that have been ongoing since 2014.
This isn’t the first
case of a large penalty against a European bank caught processing illicit
transactions for sanctioned countries and criminals but rather simply adds to
- In 2012, HSBC agreed to pay $1.9 billion and
to submit to years of heightened scrutiny after the authorities found that the
bank had helped Mexican drug cartels launder money. The operations there have
become the subject of the Netflix documentary series ‘Dirty Money’.
- In 2014, BNP Paribas paid a record sum of nearly $9
billion and pleaded guilty to violating American sanctions against Sudan and
- In 2017, Deutsche Bank was fined $630 million for
helping Russian investors move $10 billion through branches in London, Moscow
and New York.