NEW YORK: London-based Standard Chartered is expected to pay slightly more than US$1 billion to resolve a nearly five-year-old investigation of potential U.S. sanctions violations tied to its banking for Iran-controlled entities in Dubai, as well as a related U.K. probe, according to a person familiar with the matter.
Authorities are aiming for the bank to settle on Tuesday morning, two sources said.Standard Chartered has been operating under deferred prosecution agreements with U.S. authorities since 2012, when it paid US$667 million for illegally moving millions of dollars through the U.S. financial system on behalf of customers in Iran, Sudan, Libya and Burma, report agencies. The agreement has been extended numerous times, the last one extended for 10 days and set to expire on Wednesday.
The expected total payout also covers a roughly US$134 million penalty from Britain’s Financial Conduct Authority related to historical financial crime controls.
A spokeswoman for Standard Chartered declined to comment. The U.S. Department of Justice, the U.S. Attorney’s office in Washington, the Federal Reserve, the Manhattan District Attorney and the New York Department of Financial Services all declined to comment.