Standard Chartered pays to settle US sanctions row

Standard Chartered has stumped up more than $300m (£187m) to resolve a probe into accusations that it had flouted United States sanctions on foreign countries by funneling money for Iranian and Sudanese clients.

Confirming a settlement which was flagged up by the bank in its pre-close trading update last week, the New York district attorney's office said the bank had moved "more than $200m though the US financial system primarily on behalf of Iranian and Sudanese clients".

Between 2001 and 2007, it is accused of doing so by "stripping" the funds of information that would have identified the source and thus have led to them being scrutinised or blocked.

Now, to end the investigation, Standard Chartered will pay $100m to resolve allegations by the US central bank that it had, among other things, been less than forthcoming about its activities.

Separately, the US department of justice and the New York district attorney announced a deferred prosecution agreement with the bank, which will see it forfeit an additional $227m.

Standard Chartered had already agreed earlier in the year to pay $340m to settle a related case with the New York department of financial services.