On 19 August, Standard Chartered Plc, a UK-based banking organisation, entered into a consent order with the New York Department of Financial Services (“DFS”) to resolve allegations that it had failed to implement adequate procedures to identify high-risk transactions as required by its 2012 settlement with DFS. The 2012 settlement had resolved allegations that Standard Chartered violated US sanctions against Iran, Sudan and other countries.
According to DFS, these compliance failures in Standard Chartered’s anti-money-laundering programme were discovered and reported by an outside compliance monitor hired under the terms of the 2012 settlement agreement. The new consent decree imposes on Standard Chartered a $300 million penalty, a suspension of dollar-clearing for certain bank clients in Hong Kong and the United Arab Emirates, and a prohibition on opening new dollar-denominated demand accounts in New York for clients without DFS approval. It also requires Standard Chartered to comply with additional enhanced compliance requirements and extends the independent monitor’s mandate for two years.