Standard Chartered faces fine over anti-money laundering system ‘issues’

Standard Chartered could face more money laundering fines, after US regulators identified faults with its transaction monitoring systems.


Standard Chartered could face more money laundering fines after US regulators identified faults with its transaction monitoring systems.

The London-based bank said that it is engaged in talks with the New York Department of Financial Services (NYSDFS) after “certain issues” were found relating to its post-transaction surveillance system, part of anti-money laundering systems and controls. 

Most banks rely on anti-money laundering (AML) technology to monitor and detect suspicious transactions made through their business, helping to prevent funding of criminal or terrorist organisations.

“The Group is engaged in discussions with NYSDFS and the monitor with respect to those issues and their ongoing remediation,” the bank said, adding that it is likely to result in remedial action and an extension of a two-year monitoring period.

Standard Chartered received a similar money laundering fines two years ago, agreeing a $340 million (£217m) settlement with New York regulators in 2012 after being accused of breaking US sanctions by hiding $250 billion (£148bn) of transactions with Iran.

The announcement comes as the bank’s CEO Peter Sands revealed “disappointing” results in its half year financial statement, with profits 20 percent lower than the previous year.

In its statement, Standard Chartered committed to an ongoing multi-year digital transformation as it seeks to overhaul its business.

“We are [...] revamping our infrastructure, rolling out standardised platforms and processes, automating manual procedures, reinforcing controls, deploying tools to enable us to extract more value from the vast amounts of information we generate and capture every day,” Sands said.

“Through technology-driven innovation, we can empower our clients, achieve significant improvements in efficiency and run our business with greater insight, flexibility and control.”

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