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.
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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