Dawn News

A photo taken on August 7, 2012 shows the headquarters of Standard Chartered Bank in London. Britain's bank sector suffered a fresh heavy blow as Standard Chartered's market value slumped as much as a quarter after US regulators alleged it hid $250 billion in transactions with Iran. The dire news comes amid a torrid time for British banks -- just weeks after US lawmakers accused HSBC of failing to apply anti-laundering rules, thereby benefiting Iran, terrorists and drug dealers. - File photo

NEW YORK: Standard Chartered Plc has agreed to pay $340 million to settle allegations that it hid transactions with Iran from regulators, the New York Department of Financial Services said on Tuesday.

In addition to the civil penalty, the bank agreed to install a monitor for at least two years to evaluate the bank's money-laundering risk controls in its New York branch, the department said in a statement.

The department also said it had adjourned a hearing set for Wednesday at which it had called on Standard Chartered to demonstrate why its New York state banking license should not be revoked.

“The parties have agreed that the conduct at issue involved transactions of at least $250 billion,” the department said in a statement.

The bank did not immediately return a call seeking comment on the settlement.

New York Financial Services Superintendent Benjamin Lawsky made the allegations against Standard Chartered on Aug. 6, saying it was a “rogue institution” for breaking US sanctions.

The announcement came after Standard Chartered's Chief Executive Peter Sands, who strongly denied the allegations last week, flew to New York to take personal control of the bank's attempts to reach a settlement.


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