The UK bank, Standard Chartered has been barred from processing certain transactions on behalf of clients as part of a $300m settlement with the New York banking regulator.
As part of the agreement with the Department for Financial Services (DFS), Standard Chartered must suspend it’s clearing activities for certain high risk clients in Hong-Kong and has been forced to end certain client relationships in the Middle East. They are also banned from accepting new dollar clearing accounts without DFS approval.
This brings the level of fines received by the bank for deficiencies in it’s Anti Money Laundering (AML) systems and controls to around $1bn over the last two years, with the firm previously receiving a $660m fine for violating international sanctions rules.
This comes after the French bank, BNP Paribas agreed to pay around $9bn for knowingly violating US sanctions on Iran and Sudan.
The fine should serve as a reminder to firms of all sizes that failing to implement and maintain the correct standards in relation to AML can lead to significant interference from regulators and heavy financial penalties, especially if the firm operates on a cross border basis. It is the duty of all firms to ensure that they are not dealing with clients on sanctions lists and to have robust internal processes which prevent breaches.
Speak to Complyport