Standard Chartered fined $1.1bn for money-laundering and sanctions breaches

The London based Standard Chartered has been ordered to pay $1.1bn (£842m) by US and UK authorities to settle allegations of poor money-laundering controls and breaching sanctions against countries including Iran.

The British bank has agreed to pay $947m to American agencies, including the US Department of Justice, over allegations that it violated sanctions against a string of countries including Iran.

Bill Winters, the bank’s chief executive, said: “The circumstances that led to today’s resolutions are completely unacceptable and not representative of the Standard Chartered I am proud to lead today. Fighting financial crime is central to what we do and who we are; we do not tolerate misconduct or lax controls and we will continue to root out any issues that threaten the trust we have built over more than 160 years.”

The bulk of the settlement, $639m, relates to breaches of US sanctions against Burma (Myanmar), Cuba, Iran, Sudan and Syria. The bank will also pay £102m to Britain’s Financial Conduct Authority (FCA).

The fine is one of the largest imposed on a bank since France’s BNP Paribas had to pay $8.9 billion in penalties in 2014 over alleged sanctions violations.

US assistant attorney general, Brian Benczkowski, said: “Today’s resolution sends a clear message to financial institutions and their employees: if you circumvent US sanctions against rogue states like Iran — or assist those who do — you will pay a steep price.”

Other British banks penalized by US authorities include RBS, which was slapped with a $10 billion fine over the alleged mis-selling of mortgage-backed securities. In 2012, HSBC paid a fine of $1.9 billion to settle US money-laundering allegations.