The New York Department of Financial Services (“NYDFS”) has reached a $340 million settlement with Standard Chartered, a British bank with a New York office, over $250 billion in Iranian transactions. NYDFS alleged that the bank concealed the identities of its Iranian clients, lied to regulators, and prevented efforts to detect money laundering in violation of state law.
While the settlement has yet to be finalized, in addition to the monetary payment, the terms of the settlement include the implementation of extensive monitoring at the bank’s New York office, including the placement of outside monitors and examiners from NYDFS, and the appointment of additional auditors.
The NYDFS is a relatively new regulatory department, created in October 2011 by the consolidation of the New York State Insurance Department and the New York State Banking Department. While other regulatory agencies have been examining Standard Chartered’s conduct, the settlement with NYDFS is the first settlement regarding the alleged conduct, and it remains to be seen what impact, if any, the settlement with NYDFS will have on other investigations, including those by federal agencies.
For news analysis, see Standard Chartered faces a New Normal in New York; British Bank in $340 Million Settlement for Laundering.