Laundering policy: StanChart fined $300 mn

New York’s banking regulator hit Standard Chartered Bank with a $300 million fine and restrictions on its dollar-clearing business for inadequate controls on money laundering.

The New York Department of Financial Services (DFS) said the British bank’s internal compliance systems had failed to detect or act on a large number of “potentially high-risk transactions” mostly originating from Hong Kong and the United Arab Emirates.The new punishment came two years after the bank paid US regulators $667 million to settle charges it violated US sanctions by handling thousands of money transactions involving Iran, Myanmar, Libya and Sudan.

A DFS monitor appointed in 2012 to keep an eye on the bank discovered that it had not detected the allegedly high-risk transactions from Hong Kong and the UAE and reported them as it should have, the department said.

In a settlement agreed with the bank, DFS ordered Standard Chartered to halt dollar-clearing operations for unnamed "high-risk retail business clients" of its Hong Kong unit.

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