Standard Chartered could lose banking license on possible money laundering charges

August 6, 2012 by · Leave a Comment
Filed under: Legal News 

The bad news just keeps coming.  On the heels of HSBC having possible terrorism funding links, now Standard Charter look to have violated the sanctions on Iran by the order of $250 BILLION in transactions that should not of happened, this is even after the said they cuts ties with the Iranian Government in 2007.  When are we going to hand down the “Rule of Law” and make it apply to everyone?   How long are the antics going to be tolerated by the general public.

We are now calling outright “Fraud”, “Mis-selling” to make it sound not so bad.   White collar crimes are the worst of the bunch in my book because it involves people who have the means and intelligence to know better but choose to commit crimes.   If I go rob a store, I can’t go into court and settle without admitting guilt.   Some of these crimes I read about daily, show nothing but guilt but we can’t seem to be able to put anyone in jail.   Are we that captured as a society?   Do we really not have the spine and gut to do what needs to be done regardless of the cost?    I want everyone to ask themselves these questions tonight and think about that every-time you read another one of these stories.

I try everyday not to become numb to this because I believe we will have a moment of clarity and then and only then we will see meaningful change.   In my opinion, this is the civil rights issue of our time.   Will the civil have the same laws as the privileged and will the sword of justice come down equally on both groups of class?

WSJ – British banks just can’t seem to stay out of trouble with U.S. regulators. Barclays paid a huge fine for its role in manipulating Libor. HSBC then came unstuck on money-laundering charges. Now it is Standard Chartered’s turn.

New York’s Department of Financial Services on Monday accused the emerging markets-focused bank of running a “rogue institution” that worked with the Iranian government to hide over $250 billion of secret transactions—while raising the threat of Standard Chartered losing its license to operate in the state of New York. The strongly-worded accusation then went into detail about how the bank allegedly worked to get around U.S. Office of Foreign Assets Control requirements on foreign sanctions.

The charges are a huge embarrassment for Standard Chartered, which largely stayed above the fray of the financial crisis and whose CEO, Peter Sands, has been vocal with his views on the future of regulation. It would be a particular blow for investors if this shook up the settled management team that steered the bank through the crisis in good shape. And it is more bad news for London’s reputation as a banking center.

From a financial perspective, if the allegations stick, the bank may end up with a fine. After all, there is a long list of European banks that have settled with U.S. authorities on OFAC-related charges. In June, ING Bank, headquartered in the Netherlands, settled with the Department of Justice and New York County District Attorney’s Office for $619 million.

But the appearance of the New York regulator adds a wild card. Standard Chartered cannot assume that past fines are a guarantee of future settlements.


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