London based Standard Chartered Bank will forfeit $227 million to the U.S. Justice Department as part deferred prosecution agreements with the DOJ and New York County District Attorney.
The Board of Governors of the Federal Reserve System also announced Monday that it has assessed a $100 million civil penalty against the bank.
The bank has admitted to illegally transferring millions of dollars through the U.S. financial system for the benefit of Iranian, Sudanese, Libyan and Burmese entities operating under U.S. sanctions. The bank has also entered into settlement agreements with the Treasury Department’s Office of Foreign Assets Control (OFAC).
OFAC assessed a penalty of $135 million, which the Justice Department today said will be “satisfied” by the $227 million the bank had agreed to forfeit to DOJ and New York DA.
Standard Chartered had already reached a $340 million settlement in August with a new New York regulator, Benjamin Lawsky, head of the New York Department of Financial Services, who accused the bank of hiding prohibited transactions with Iran from regulators. That settlement was controversial because Lawsky had moved ahead on his own without coordinating with other law enforcement agencies that were working the same case.
All told, Standard Chartered will pay $667 in fines and penalties to U.S. authorities.
A criminal information was filed in the U.S. District Court for the District of Columbia today charging Standard Chartered with one count of knowingly and willfully conspiring to violate the International Emergency Economic Powers Act.
The case was prosecuted by Money Laundering and Bank Integrity Unit Trial Attorney Clay Porter of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney George P. Varghese of the National Security Section of in the D.C. U.S. Attorney’s office.
The Money Laundering and Bank Integrity Unit was recently formed to focus on charging money laundering and Bank Secrecy Act violations in an effort to deter criminality inside the financial system.
See the attached criminal information and deferred prosecution agreement.