Standard Chartered refutes US charges on Iran deals
Standard Chartered Bank today said the US regulatory order charging it with USD 250 billion worth secret transactions with Iran does not present the "full and accurate" picture and over 99.9% of its Iran-related business was in compliance with the relevant regulations.
August 07, 2012 / 13:09 IST
Standard Chartered Bank today said the US regulatory order charging it with USD 250 billion worth secret transactions with Iran does not present the "full and accurate" picture and over 99.9% of its Iran-related business was in compliance with the relevant regulations.
The UK-headquartered global banking giant said the total value of transactions in non-compliance with the related US regulations was in fact less than USD 14 million and the bank stopped all its new businesses with Iranian clients over five years ago.The bank's reaction follows an order passed by the New York State Department of Financial Services (DFS) last night, wherein StanChart was accused of hiding over 60,000 secret transactions involving at least USD 250 billion over a period of 10 years and exposing the US financial system to terrorists, weapon dealers and drug kingpins.Iran figures among the countries barred by the US for doing any business by the individuals and entities. Refuting the charges levelled by DFS, Standard Chartered Bank said in a filing with stock exchanges in London and India, where it is listed, that the group "does not believe the order issued by the DFS presents a full and accurate picture of the facts. It strongly rejects the position or the portrayal of facts as set out in the order issued by the DFS".The bank added, "The Group takes its responsibilities very seriously and seeks to comply at all times with the relevant laws and regulations." StanChart's Indian Depositary Receipts (IDR) tanked 14.72% to Rs 88.60 on the BSE in early morning trade. Among other charges, the DFS order also accused StanChart of deficient money laundering controls in its outsourcing of work to India. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
