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Standard Chartered is preparing for an exceptional fine this week of up to hundreds of millions of pounds as it adjusts US charges for violating Iran's sanctions.
The bank, headquartered in London, but focusing on Asia, is expected to investigate as part of a lengthy investigation into the lifting of sanctions by Wednesday, while a six-year deal with US authorities on deferred prosecution (DPA) should expire.
DPAs allow companies to settle charges with state authorities without incurring criminal charges. Companies must accept specific conditions, which may include a fine and a follow-up of their behavior during a specified period.
Standard Chartered announced last month that it has set aside US $ 900 million to cover US and UK penalties, the bulk of which should be spent on resolving US sanctions violations.
The investigation concerns alleged failures in the bank's internal controls, which may have allowed clients with "Iranian interests" to carry out activities under the bank's control between 2007 and 2014. This could result in fines. "Substantial" and "other measures of its operations, according to the latest annual report of Standard Chartered.
Standard Chartered has already paid $ 667 million in 2012 to address the allegations of sanctions violations between 2001 and 2007.
Laith Khalaf, senior badyst at stockbroker Hargreaves Lansdown, said: "The best estimate we have for the fines against Standard Chartered right now is the bank's arrangements.
"The charges of misconduct are a particularly difficult cost to predict because there is no way to model the regulatory decisions that determine the extent of it. From the bank's point of view, it makes sense to provide a relatively accurate supply, as far as possible, so as not to create unpleasant surprises for the market. However, we expect them to fish on the wrong side of the debate, lest they wave a red rag against the ruling bull. "
Standard Chartered's share price fell below 650p from 845p in early 2018.
The bank had originally entered into deferred prosecution agreements with the US Department of Justice and the New York County Attorney's Office in 2012. The DPA delay has been extended at least four times in recent years and was expire on March 31, 2019. However, a further 10-day extension announced last month reduced the deadline to April 10. Standard Chartered said: "We continue to work constructively with the US authorities to reach a fair resolution."
This is the latest fine imposed on Standard Chartered, which has been fined GBP 102 million by the Financial Conduct Authority of the United Kingdom for breaches of "financial crime control" in February. The lender also fined the lender $ 40 million in 2007 for rigging currency exchange rates between 2007 and 2013. These two costs were recorded in the $ 900 million provision of the bank.
He was also sentenced to pay $ 300 million to the Financial Services Department of the State of New York in 2014 following failures in his anti-money laundering procedures.
British banks: who bears the biggest penalty?
Here are some of the heaviest fines imposed on UK banks in recent years.
2018 The Royal Bank of Scotland reaches a $ 4.9 billion settlement with the US Department of Justice on charges that he sold mortgage-backed securities in the run-up to the financial crisis.
2017 RBS is condemned to pay $ 5.5 billion with the US Federal Housing Finance Agency for the purchase of toxic bad mortgage securities between 2005 and 2007.
2015 UK Financial Conduct Authority fines Barclays £ 284 million to fudge exchange rates.
2013 RBS Fined $ 390 Million by US and UK Regulators for Libor Scandal
2012 HSBC is obliged to pay $ 1.9 billion after US prosecutors accused the bank of money laundering offenses and deliberately flouting US sanctions
2012 Standard Chartered agrees with the US authorities to pay $ 667 million to resolve alleged violations of sanctions between 2001 and 2007.
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