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Standard Chartered fined and suspended for AML failures

22 August 2014

Standard Chartered fined for AML failures - Read more

Standard Chartered bank has been fined and suspended from dollar clearing high-risk clients in Hong Kong, for anti-money laundering (AML) compliance failures.

The bank has been fined $300 million (£181 million); has been suspended from dollar clearing through its New York Branch for high-risk retail business clients at its SCB Hong Kong subsidiary; has been ordered to exit high-risk client relationships within certain business lines at its branches in the United Arab Emirates; and has been ordered not to accept new dollar-clearing clients or accounts across its operations without prior approval from NYDFS.

Standard Chartered bank’s compliance remediation failures were uncovered by NYDFS' independent monitor, which the regulator had installed at the bank as part of its 2012 agreement.

NYDFS found that Standard Chartered had failed to detect a large number of potentially high-risk transactions for further review. A significant amount of the potentially high-risk transactions the system has failed to detect originated from its Hong Kong subsidiary and branches in the United Arab Emirates, among others.

Superintendent Lawsky said: ‘If a bank fails to live up to its commitments, there should be consequences. That is particularly true in an area as serious as [AML] compliance, which is vital to helping prevent terrorism and vile human rights abuses.’

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