Standard Chartered PLC Rotten Score Breakdown

In April 2019, Standard Chartered Bank admitted to illegally processing transactions in violation of U.S. sanctions against Iran and entered a coordinated resolution with U.S. authorities exceeding $1 billion. The U.S. Department of Justice said the criminal conspiracy lasted from 2007 through 2011 and involved approximately 9,500 transactions worth about $240 million processed through U.S. financial institutions for the benefit of Iranian entities. Standard Chartered agreed to $240 million in forfeiture and a $480 million criminal fine, while additional resolutions were reached with the New York County District Attorney, Federal Reserve, New York Department of Financial Services, OFAC and the UK FCA. The Justice Department stated that the bank admitted the sanctions-related conduct as part of the amended deferred prosecution agreement. Source: U.S. Department of Justice https://www.justice.gov/archives/opa/pr/standard-chartered-bank-admits-illegally-processing-transactions-violation-iranian-sanctions

In April 2019, the UK Financial Conduct Authority fined Standard Chartered Bank £102,163,200 for serious and sustained shortcomings in anti-money-laundering controls. The FCA's findings covered Standard Chartered's UK wholesale correspondent-banking business from November 2010 to July 2013 and its UAE branches from November 2009 to December 2014. The regulator found weaknesses in customer due diligence, ongoing monitoring, identification and mitigation of money-laundering risks and escalation of red flags. Examples cited by the FCA included opening an account funded with three million UAE dirham in cash carried in a suitcase and failing to adequately investigate other high-risk customers. Standard Chartered accepted the FCA's findings and received a 30% settlement discount. Source: Financial Conduct Authority https://www.fca.org.uk/news/press-releases/fca-fines-standard-chartered-bank-102-2-million-poor-aml-controls