Standard Chartered Bank today settled the remaining of its claims with US prosecutors over its alleged flaunting of sanctions regulations. The Board of Governors of the Federal Reserve fined the Bank $100 million, while the Department of Justice (DOJ) fined it an additional $227 million. Of the DOJ fine, $132 represents the penalty levied by OFAC.
When you add in the $340 million previously settled with NY state prosecutors, Standard Chartered’s total civil penalties of $667 set a new record of sorts, eclipsing the $619 million paid out earlier this year by ING Bank.
An interesting note: OFAC notes that the “vast majority” of Iranian transactions at issue, estimated by NY state to be in excess of $250 billion, were actually permitted by licenses and exemptions at the time. OFAC only finds a relative handful of transactions, totaling only $24 million, to be violations. As that constitutes less than 1/100th of a percent of the total, Mr. Watchlist wonders how much effort OFAC really put into investigating each case – it seems unreasonable that the percentage of violating transactions is that miniscule.
NY Times news story
OFAC Press release
Department of Justice Press release
Board of Governors of the Federal Reserve System Press release
Federal Reserve Bank Settlements – PDF 1, PDF 2
Categories: Sanctions News