A British bank that had been accused of hiding transactions with Iran has settled with New York banking regulators, according to a statement from Gov. Andrew Cuomo.
State Financial Services Superintendent Benjamin Lawsky had accused the bank of shielding $250 billion in deals linked to Iran, allegations that had been denied by its top executive.
Details of the settlement are light at this point, but Bloomberg is reporting the bank will pay $340 million to settle the matter.
Here’s Cuomo’s statement:
“We created the Department of Financial Services because we believed that New York needed a tough and fair regulator for the banking and insurance industries to protect consumers and investors. I also believe a credible regulator actually benefits financial companies by ensuring investor confidence in the integrity of the marketplace.
“This state and nation are still paying the price for a failed regulatory system and that must not happen again. This result demonstrates the effectiveness and leadership of the new Department of Financial Services, and I commend the state legislature for creating a modern regulator for today’s financial marketplace.”
Lawsky first took action against Standard Chartered last week. According to Reuters, the move angered the federal Treasury, which had been in its own talks with the bank to settle the claims.
UPDATE: Here are the major terms of the settlement, according to the state Department of Financial Services:
- The Bank shall pay a civil penalty of $340 million to the New York State Department of Financial Services.
- The Bank shall install a monitor for a term of at least two years who will report directly to DFS and who will evaluate the money-laundering risk controls in the New York branch and implementation of appropriate corrective measures. In addition, DFS examiners shall be placed on site at the Bank.
- The Bank shall permanently install personnel within its New York branch to oversee and audit any offshore money-laundering due diligence and monitoring undertaken by the Bank.