U.S. Investigation of Standard Chartered Bank Over Transactions with Iran

U.S. officials have begun an investigation into the British bank Standard Chartered, suspecting it may have violated sanctions against Iran as far back as 2013. Reuters reported on Tuesday, October 9, that Bill Winters, the CEO of Standard Chartered, stated in a notice to senior employees that 'the large volume of payments currently under investigation dates back to before 2012 and none of them extend to 2014.' The ongoing investigation focuses on potential violations after 2007 and examines whether U.S. officials were fully aware of Standard Chartered's transactions with Iran in 2012 when the U.S. reached an agreement with the bank to suspend legal action for violating sanctions. Reuters notes that a spokesperson for Standard Chartered confirmed reports regarding the CEO's notice sent to hundreds of senior managers but declined to provide further details. The notice, which was seen by Reuters, also references media reports about the bank's efforts to improve its economic crime control measures. Bill Winters wrote, 'We are cooperating with investigations related to past actions and regulatory issues, and resolving these outstanding matters is a priority for us.' He added, 'This has been a long-term process that has not yet concluded, but we are working closely with officials and engaging in constructive discussions with them to reach an acceptable solution.' Media reports based on preliminary assessments of conversations between Standard Chartered and relevant authorities suggest that the bank faces a potential fine of around $1.5 billion. Standard Chartered has not disclosed the amount of fines but stated last week that it is in discussions with U.S. authorities. In 2012, Standard Chartered reached an agreement with the U.S. to suspend legal action, which has been extended once and is set to expire in December 2018. The agreement stipulates that if Standard Chartered violates the terms of the agreement, it will face larger penalties. In its recent annual report sent to shareholders, Standard Chartered warned that resolving the U.S. investigations would mean paying a substantial financial penalty.