Saturday, October 25, 2014   

StanChart fined over laundering controls
(08-20 14:19)

New York state's banking regulator hit Standard Chartered Bank with a US$300 million fine and restrictions on its dollar-clearing business Tuesday for not detecting possible money laundering.
The New York Department of Financial Services (DFS) said the British bank's internal compliance systems had failed to detect or act on a large number of ''potentially high-risk transactions'' mostly originating from Hong Kong and the United Arab Emirates.
The new punishment came two years after the bank paid US regulators $667 million to settle charges it violated US sanctions by handling thousands of money transactions involving Iran, Myanmar, Libya and Sudan.
A DFS monitor appointed in 2012 to keep an eye on the bank discovered that it had not detected the allegedly high-risk transactions from Hong Kong and the UAE or reported them as it should have, the department said.
"If a bank fails to live up to its commitments, there should be consequences. That is particularly true in an area as serious as anti-money-laundering compliance, which is vital to helping prevent terrorism and vile human rights abuses,'' said DFS head Benjamin Lawsky.
The department did not give any information on the nature of the transactions, or whether they proved to involve laundering or not.
In a settlement agreed with the bank, DFS ordered Standard Chartered to halt dollar-clearing operations for unnamed "high-risk retail business clients'' of its Hong Kong unit.
The bank is already cutting business with high-risk clients in UAE, but will also not be able to process dollar funds through the United States for them.
Its New York branch also is forbidden to take on any clearing or deposit accounts from new customers without the approval of Lawsky's office. --AFP   
Other Business breaking news:
China and 20 other countries sign up to regional bank (10-24 18:00)
Britain says EU is asking for bigger contribution (10-24 17:49)
British economy grows slower in Q3 (10-24 17:00)
Firm in China's first bond default to be restructured (10-24 16:59)
Hang Seng closes lower (10-24 16:22)
Pearson reports sliding sales (10-24 16:22)
European stocks fall at open (10-24 16:05)
BASF says won't meet 2015 targets (10-24 16:04)
ECB to unveil results of eurozone bank health check (10-24 16:04)
German consumer confidence stops falling: survey (10-24 15:59)

More breaking news >>

© 2014 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts

 


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2014, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.