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Second SCB Penalty Illustrates the Challenges of Holding Dollar Accounts
By Colby Adams
printStandard Chartered Bank's pending settlement with U.S. authorities for violating sanctions against Iran demonstrates the high-stakes compliance challenge inherent in holding U.S. dollar clearing accounts, say analysts. Three months after agreeing to pay the New York State Department of Financial Services (NYSDFS) $340 million for processing up to $250 billion in funds linked to designated Iranian entities, the bank disclosed in a mandatory U.K. trading statement Thursday that it had set aside $330 million dollars to settle related charges brought by U.S. banking regulators and prosecutors. The settlement is likely to be finalized next week, probably Monday or Tuesday, according...
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