Standard Chartered in money-laundering talks


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The Independent Online

Standard Chartered is discussing a settlement with US regulators ahead of tomorrow's preliminary hearing before the New York State Department of Financial Services (DFS), which last week alleged it had laundered $250bn (£159bn) of money from Iran.

The London-based bank, which is headed by Peter Sands, is also looking at asking for a postponement of the hearing if it is close to striking a deal.

It has already indicated it will comply with one of the New York state regulator's requests that it appoint an external monitor to ensure it complies with US money-laundering rules.

Standard Chartered last week said it had broken the rules on less than $14m worth of transactions and is said to have offered to pay a fine of just $5m. The DFS has been looking for a fine of $500m and other US regulators could also seek multi-million dollar punishments.

However, the DFS has broken ranks over an agreed settlement with other regulators and incurred the anger of the US Treasury, Department of Justice and New York Federal Reserve. That could weaken their case when it comes to any settlement.