Standard Chartered Bank Deferred Prosecution Agreement

Much of the lender`s recent problems stem from its subsidiary in the United Arab Emirates, and in particular dubai, where two former bank employees helped Iranian National Mahmoud Reza Elyassi process some 9,500 U.S. dollar transactions between November 2007 and August 2011. To avoid a review of all $200 million payments, Standard Chartered instructed its employees to scour or omit data that is typically added to payments in the SWIFT interbank messaging platform, officials said in 2012. As a result, the corresponding institutions, which received coverage from the London lender, did not know that they were working for transactions on behalf of blacklisted companies. “Today`s resolution sends a clear message to financial institutions and their employees: if you circumvent U.S. sanctions against rogue states like Iran – or if you help those who do – you will pay a high price,” said Assistant Attorney General Benczkowski. When a global bank trades in the U.S. financial system, its compliance program must be up to the task of detecting and preventing sanctions violations – and if not, banks are obligated to identify, report and correct defects. The Department of Justice is committed to protecting our U.S. financial system and will continue to hold financial institutions and individuals to account if they violate the U.S.

Sanctions Act. In 2012, SCB agreed to charge the Department of Justice $227 million for violating the International Emergency Economic Powers Act (IEEPA). The bank agreed to the recovery in a CCA agreement with the Department of Justice and the New York County Attorney`s Office to conceal at least $250 billion in transactions with the Iranian government, which were carried over from 2001 to 2007 through its U.S. subsidiary on behalf of sanctioned institutions in Iran. Sudan, Libya and Burma. The U.S. Attorney`s Office for the District of Columbia and the Department of Justice decided to extend a 2012 lawsuit agreement with British bank Standard Charted Bank by three years because it found it had failed to meet the requirements of the original agreement – and may even have committed additional sanctions violations. The bank announced Tuesday that because of the recent changes, they were not required to work under the supervision of a court-ordered compliance monitor – a separate obligation imposed by NYDFS and the Department of Justice in 2012.

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