The recently announced extension comes with amendments to the 2012 Deferred Prosecution Agreement (DPA) and nearly $1.1 billion in additional recoveries and fines for violations of U.S. sanctions against Iran`s and the United Kingdom`s anti-money laundering (AML) regulations related to customer due diligence and ongoing monitoring. STANDARD Chartered has agreed with U.S. authorities to extend its Deferred Prosecution Agreement (DPA) for violations of Iranian sanctions against U.S. authorities, suggesting that the conclusion of an investigation into its behavior may be near. Deputy Attorney General of the Criminal Division, Lanny A. Breuer, said: “For years, Standard Chartered Bank has deliberately violated U.S. laws governing transactions with Sudan, Iran and other countries subject to U.S. sanctions. The United States expects a minimum standard of behavior from all financial institutions that enjoy the benefits of the U.S. financial system.
Standard Chartered`s behaviour was blatant and unacceptable. Together with the Ministry of Finance and our state and local partners, we will continue our tireless efforts to hold accountable financial institutions that deliberately incentivize regulators to do business with sanctioned countries. Under the terms of the resolutions, the group will pay a total of $947 million in fines to US authorities and £102 million to the FCA. The Group recorded a provision of $900 million in the fourth quarter of 2018 that included these matters and will incur an additional and final charge of $190 million in the first quarter of 2019. The group`s deferred prosecution agreements with the DOJ and DANY have been extended until April 9, 2021. The resolutions do not include new compliance checks and the controls previously imposed by DFS and the DOJ ended on December 31, 2018 and March 31, 2019, respectively. ==References=====External links===Sanctions laws exist to protect our national security and the integrity of our financial systems,” said FBI Deputy Director Sweeney. Global banks that facilitate transactions through our financial institutions simply need to abide by these rules. Giving access to our economy to hostile nations is a dangerous issue. The deferred prosecution agreement and indictment announced today make it clear that any alleged violation of the IEEPA, whether in the name of a natural or a company, will not be taken lightly. According to the Ministry of Justice, Standard Chartered`s management was not aware of any specific crimes in its UAE subsidiary when the 2012 deal was signed, although “some high-level managers” knew that Iranian customers had accessed the bank`s online platform to initiate payments. U.S.
investigators first learned of the case after obtaining information through an independent investigation. As a result, federal and state officials identified related violations that only occurred in 2014. The New York County District Attorney`s Office (DANY) also announced today that SCB has agreed to amend its DPA with DANY and extend it for an additional two years and pay an additional fine of $292,210,160. Following the amendment of the DPA with DANY, SCB admitted to violating New York State law by falsifying, among other things, the records of New York financial institutions. SCB has also entered into separate settlement agreements with the U.S. Treasury Department`s Office of Foreign Assets Control (OFAC), the Federal Reserve (Federal Reserve) Board of Governors, the New York State Department of Financial Services (DFS) and the U.K. Financial Conduct Authority (FCA), under which SCB will pay additional penalties totaling more than $477 million. The Department of Justice has agreed to credit a portion of these related payments and will collect $52,210,160 in the fine on top of SCB`s $240 million after being credited. District Attorney Vance pointed out that while today`s DPA was intended to impose a significant sanction on the SCB and send a strong message of deterrence to other banks, important mitigating factors led to the deferral of prosecution agreement. These factors included the fact that SCB fully cooperated throughout the investigation and devoted significant resources to its internal investigation and to investigations conducted by the Prosecutor`s Office and the Department of Justice.
The SCB also acknowledged the Completeness and took responsibility for its conduct and voluntarily took a number of corrective measures before joining the Data Protection Authority. In addition, SCB voluntarily left the clearing activities of the sanctioned entity before being contacted by the prosecutor`s office. The lender said the new agreement did not include the independent monitor installed in the bank, who is tasked with reviewing its efforts to improve compliance with sanctions, meaning the monitor`s duration ended on March 31. Not all deferred prosecution agreements go smoothly in this good night. Standard Chartered Bank announced on Tuesday that it had agreed to pay $1.1 billion and extend its agreement to defer U.S. prosecutions for another year because it conspired to violate U.S. sanctions by managing financial transactions through U.S. banks in favor of Iranian companies. Today, a double criminal investigation was filed in the District of Columbia accusing SCB of illegally conspiring to violate the IEEPA.
Count one alleges CBS involvement in a criminal conspiracy from 2001 to 2007; The United States first indicted SCB for this illegal behavior in December. 10, 2012, and under the terms of an ODA received on the same day, the government agreed to defer prosecutions, and SCB agreed to pay a fine of $227 million. The second charge alleges that SCB participated in a criminal conspiracy to violate the IEEPA from 2007 to 2011. .