Release Date: December 10, 2012
For immediate release
The Federal Reserve Board on Monday announced the issuance of a consent order to cease and desist and a civil money penalty assessment of $100 million against Standard Chartered PLC, London, Standard Chartered Bank, London, and the bank's branch in New York.
The orders address unsafe and unsound practices related to inadequate and incomplete responses to examiner inquiries as well as insufficient oversight of its compliance program for U.S. economic sanctions, Bank Secrecy Act, and anti-money-laundering requirements. A significant portion of the penalty is being assessed in connection with the alleged unsafe and unsound practices related to information provided to Federal Reserve examiners, and represents one of the largest penalties assessed by the Board for such practices.
Under the cease and desist order, Standard Chartered must improve its program for compliance with U.S. economic sanctions, Bank Secrecy Act, and anti-money-laundering requirements. The United Kingdom's Financial Services Authority, the home country supervisor of Standard Chartered, has agreed to assist the Federal Reserve in the supervision of the cease and desist order.
In separate, coordinated actions, the U.S. Department of Justice and the District Attorney for New York County announced the execution of deferred prosecution agreements with Standard Chartered. The deferred prosecution agreements provide for $227 million in forfeiture against Standard Chartered. In addition, the Treasury Department's Office of Foreign Assets Control announced a settlement of $132 million with Standard Chartered for apparent violations of its economic sanctions regulations, which is deemed satisfied by the forfeiture announced by the Department of Justice.
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