Standard Chartered Bank Plc may have committed trade-sanctions violations beyond those covered by a 2012 settlement for doing prohibited business withIranand will remain under investigation and U.S. oversight for three more years, prosecutors said.New information indicates that the bank may have been unlawfully processing U.S. dollar transactions for corporate and individual customers with possible ties to U.S. sanctioned countries after 2007, according to a notice filed yesterday inWashingtonfederal court.
The U.S. is analyzing more than 3.7 million documents and hundreds of recorded phone calls produced by London-based Standard Chartered to determine whether violations did in fact occur, and if so, whether those violations were committed willfully and what the result should be, prosecutors wrote in the notice.
The 2012 settlement, in which the bank agreed to pay $327 million, covered conduct from 2001 to 2007, and government oversight ofStandard Charteredmandated under the accord was due to end today.
The extension means that Standard Chartered still faces possible prosecution on a charge of conspiracy to violate the International Emergency Economic Powers Act if its deemed to have failed to meet the terms of the agreement.
Bank Consent
The bank consented to the request for an extension, is cooperating in the inquiry and will be required to retain an independent monitor to ensure that it has an effective U.S. economic sanctions compliance program, according to the filing.
The extension of U.S. oversight was the second time Standard Chartered ran afoul of conditions that would have allowed it to avoid further regulatory penalties for transactions with Iranian customers.
The bank agreed in August 2012 to pay $340 million to resolve an Iran sanctions investigation by the New YorkDepartment of Financial Services, led by SuperintendentBenjamin Lawsky.
In August 2014, the bank agreed to pay $300 million more to the New York regulator for failing to flag suspicious transactions as required by the 2012 settlement.
In addition, the term of a monitor, Ellen Zimiles of Navigant Consulting Inc., hired to oversee compliance with the state settlement, was extended for two years.
Standard Chartered is required to abide by U.S. restrictions on business with Iran because it clears dollars in the U.S. and is subject to oversight by the Federal Reserve Board of Governors.
Chris Teo, a spokesman for Standard Chartered, didnt immediately respond to phone and e-mail messages requesting comment left after regular business hours yesterday.
By Bloomberg
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