Standard Chartered Bank Fined $1 Billion for Violating Iran Sanctions

British bank Standard Chartered has agreed to pay a fine of $1.06 billion to the U.S. and the British government for violating U.S. sanctions against several countries, particularly Iran. On Tuesday, April 9, the bank confirmed the violations on its official website and stated that it has cooperated seriously with British and American authorities regarding the financial misconduct over the past six years and is committed to preventing any financial crimes in the banking system. Bill Winters, the bank's CEO, stated, "The circumstances that led to these violations and the fine are not endorsed by the bank's representatives and the employees he currently takes pride in." Winters previously mentioned that most of the allegations against the bank relate to before 2012 and that the violations were mainly the responsibility of two senior employees in Dubai. Most of these violations were related to circumventing Iran's sanctions, with a smaller portion concerning Syria, Sudan, Cuba, and Myanmar. According to the New York State Department of Financial Services, the fine is imposed due to violations by Standard Chartered's branches in London and Dubai that occurred between 2008 and 2014, involving approximately $600 million in unauthorized financial transactions. The U.S. Department of Justice also announced that one Standard Chartered employee has been found guilty of violating sanctions, and an Iranian has been tried in absentia. Of the mentioned fine, $133 million will be paid to the British government, and the remainder to several American entities, including the U.S. Federal Reserve. Additionally, the U.S. Treasury Department stated that Standard Chartered is required to conduct ongoing assessments of its performance and to train its employees regarding sanctions as part of this agreement. In one instance of misconduct, an Iranian was allowed to deposit $815,000 into his account without being asked about the source of the funds. The bank also provided services to a customer exporting dual-use goods (military and civilian) to 75 countries without necessary investigations. The U.S. Treasury also mentioned that some Iranian companies, including petrochemical firms, were involved in these unauthorized financial transactions. Over the past decade, the U.S. has fined many international banks from Japan to Europe for violating Iran sanctions. One of the most unprecedented fines was against the French bank BNP Paribas, which paid one of the heaviest fines in banking history amounting to $8.97 billion to the U.S. to prevent further losses that could lead to the dissolution and bankruptcy of this major French bank. Several other European banks, including HSBC ($1.9 billion), ING of the Netherlands ($619 million), Japanese bank Tokyo-Mitsubishi UFJ ($8.6 million), Royal Bank of Scotland ($133 million), and German banks Commerzbank and Deutsche Bank ($800 million and $200 million, respectively) have also been fined by the U.S. in this regard. The New York State Department of Financial Services emphasizes that global financial institutions must be at the forefront of combating money laundering and financing of terrorist activities, and those who fail to promote a culture of compliance with laws will be held accountable.