Standard Chartered Bank was fined $327 million in penalties for alleged violations of U.S. sanctions against Iran, Libya and other nations, U.S. authorities said Monday.
The announcement concludes a lengthy U.S. investigation into Standard Chartered's operations in New York, London and Dubai over transactions the bank conducted for Iranian financial institutions in U.S. dollars and business it did with other nations under U.S. sanctions restrictions.
The Treasury Department said that Standard Chartered's practices from 2001 to 2007 interfered with the U.S. implementation of economic sanctions. At its London offices, for example, the U.S. said the bank in transaction details omitted or removed references to U.S.-sanctioned locations, effectively obscuring the fact the funds originated from countries such as Iran, Libya and Sudan.
The U.S. financial penalties include a $227 million forfeiture agreement with the U.S. Justice Department and a $100 million penalty by the Federal Reserve Board. The Fed penalty cites "unsafe and unsound practices" related to U.S. economic sanctions, the Bank Secrecy Act and anti-money-laundering requirements. The settlement between Standard Chartered and the U.S. government includes a deferred prosecution deal between the company and the U.S. District Attorney for New York, an agreement that is often part of a negotiated settlement.
