OFAC AND UK SETTLEMENTS WITH STANDARD CHARTERED BANK OVER ALLEGED SANCTIONS-RELATED VIOLATIONS

On 9th April, the US Treasury announced a $639 million settlement with UK-based Standard Chartered over alleged violations of Cuban, Syrian, Iranian and Burma/Myanmar sanctions regulations.  The Treasury says that, from June 2009 until June 2014, the bank processed 9,335 transactions totalling $437,553,380 that were processed to or through the US.  The majority of the conduct is said to have involved Iran-related accounts maintained by the bank in Dubai branches, including accounts held for a number of general trading companies and a petrochemical company.  Separately, the bank has agreed to settle its potential civil liability for apparent violations of the Zimbabwe Sanctions Regulations and agreed to remit $18 million.

https://home.treasury.gov/news/press-releases/sm647

FCA FINES STANDARD CHARTERED FOR AML-RELATED BREACHES

A news release from the FCA advised that it has fined Standard Chartered Bank £102,163,200 for AML breaches in 2 higher risk areas of its business.  This is the second-largest financial penalty for AML controls failings ever imposed by the FCA.  Like the US action, the FCA action also involved the bank’s UAE branch.  FCA found serious and sustained shortcomings in the bank’s AML controls relating to customer due diligence and ongoing monitoring.  Standard Chartered failed to establish and maintain risk-sensitive policies and procedures, and failed to ensure its UAE branches applied UK-equivalent AML/CFT controls.

http://www.mondovisione.com/media-and-resources/news/uks-financial-conduct-authority-fines-standard-chartered-bank-1022-million-fo/

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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