Standard Chartered settles Iran money laundering case with NY for $340M, pledges reforms

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[box type=”info” style=”rounded” border=”full”]Note this fine is from NY State regulator and hence there might still be a fine coming from Federal regulators (click here for more)[/box]

New York’s financial regulator said Tuesday that his agency has reached a $340 million settlement with Standard Chartered Bank to resolve an investigation into whether the British bank schemed with the Iranian government to launder $250 billion from 2001 to 2007.

The bank will pay the civil penalty to the state and will strengthen oversight of overseas transactions, New York Superintendent of Financial Services Benjamin Lawsky said.

The bank had no immediate comment Tuesday.

Standard Charter will install a monitor for at least two years who will evaluate the money-laundering risk controls of its New York branch and take corrective measures, the department said. It also will permanently install personnel to oversee and audit offshore money-laundering monitoring, the agency said. State agency examiners also will be placed at the bank.

“We will continue to work with our federal and state partners on this matter,” Lawsky said. A department hearing on the issue scheduled for Wednesday in New York City has been adjourned.

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Link to the detailed order by DFS NY: click here