Standard Chartered Deferred Prosecution Agreement 2019

The new extension is expected with changes to the 2012 Enforcement Agreement (DPA) and nearly $1.1 billion in additional recoveries and fines for non-compliance with U.S. sanctions against Iranian and British anti-money laundering (AML) rules related to due diligence and customer oversight. LONDON, December 21, 2018 – According to the legal and regulatory information contained in its semi-annual report and its interim management statement of the group of October 31, 2018, Standard Chartered PLC (“the group”) announces that it has agreed to extend its agreement on delayed lawsuits (“DPAs”) until March 31, 2019. In addition, SCB has agreed with the DOJ and NYDA, initially implemented in 2012, for a two-year extension of the Deferred Repressive Agreements (DPAs), which have already been renewed several times and were due to expire earlier this month. Standard Chartered Bank announced on Tuesday that it had agreed to pay US$1.1 billion and extend its U.S. agreement on adjourned lawsuits for conspiring to violate U.S. sanctions by blocking financial transactions through U.S. banks for the benefit of Iranian companies. The United States then received new information through an independent investigation into possible additional historical violations of U.S.

sanctions legislation and legislation committed by CBS after the period mentioned in the 2012 statement. On December 9, 2014, the parties amended the 2012 Dpa to extend its mandate for an additional three years, to give cbs additional time to demonstrate compliance with its obligations under the 2012 CCA and to give the boards additional time to investigate possible further violations of the Act [Dkt. 8] (Amendment “2014”). The 2014 amendment also required the CBS to maintain an independent compliance monitor. The parties have made four other amendments that extend the validity of the 2012 CCA until April 10, 2019. [Dkt. Entry 10-13] Under the terms of the resolutions, Standard Chartered will pay a total of US$947 million in fines to U.S. government authorities and US$102 million ($133 million) to the UK Financial Conduct Authority. The bank made a provision of $900 million, which included these issues in the fourth quarter of 2018, and will assume an additional and final charge of $190 million in the first quarter of 2019, according to the company. “U.S. sanctions laws exist to protect our national security and the integrity of our financial systems,” the FBI`s deputy director said in The Sweeney Lot.

“Global banks that facilitate transactions through our financial institutions must follow these simple and simple rules. Giving enemy nations access to our economy is a dangerous matter. The agreement on adjourned prosecutions and charges announced today clearly indicates that any alleged violation of IEEPA, whether on behalf of an individual or a company, is not taken lightly. The FCA has also described SCB`s VaE branches as an epicenter or, at the very least, symbolic of the bank`s alleged systemic problems – namely failures in defining and maintaining risk-sensitive guidelines and procedures . . . . (and) ensure that their BRANCHEs in the United Arab Emirates carry out equivalent terrorist and counter-terrorism financing checks in the UK.” The ACF pointed to some more monstrous examples of these failures that occurred between 2009 and 2014, such as.B. “Opening an account containing 3 million dirhams in cash in a suitcase [about $500,000 or $652,000] with little evidence that the origin of the funds has been investigated.” The FCA fined SCB more than $102 million, a penalty that itself reflected a “30% discount” applied as a result of the CBS agreement not to challenge the FCA`s findings, and is the second largest fine for a breach of AML control that the agency has ever imposed.

This entry was posted in Uncategorized. Bookmark the permalink.