Conflict & Justice

US Regulators Say Standard Chartered Bank Laundered Iranian Cash

London-based Standard Chartered is facing charges that it "schemed" with Iranian banks to skirt international sanctions.

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Tom Braithwaite, the US Banking Editor for the Financial Times says regulators accuse the bank of hiding more than 60,000 transactions.

"They're essentially saying that over a period of years, Standard Chartered conducted $250 billion of transactions with Iranian entities. And to avoid detection from American authorities, they stripped out the codes from the money transfers that would have identified Iranian banks," says Braithwaite.

He says such cases are usually settled when the bank agrees to pay a fine. But he notes that regulator's accusations of money-laundering could cost the London-based Standard Chartered its New York banking license.

"This really is an escalation of the threat level to banks, saying we could even kick you out of New York," Braithwaite adds.

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    Tom Braithwaite, U-S Banking Editor, Financial Times ( Photo: Courtesy Financial Times)

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    Standard Chartered conducts more than three-quarters of its business in fast-growing Asia. (Photo: BBC)

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