TheNewYorkStateDepartmentofFinancialServicesmadetheaccusationafteranextensiveprobewhichincludedthereviewofmorethan30,000pagesofdocuments,includinginternalSCBe-mailsthatdescribewilfulandegregiousviolationsoflaw。

SCBhasnowbeencalledupontoexplainapparentviolationsofthelawinabidtosaveitsNewYorkbankinglicence。

Additionally,theNewYorkauthoritieswantagoodreasonwhySCBsUSdollarclearingoperationsshouldnotbesuspended,pendingaformallicencerevocationhearing;thedepartmentalsowantsSCBtopayforanindependent,on-premisesmonitoroftheDepartmentsselectiontoensurecompliancewithrulesgoverningtheinternationaltransferoffunds。

StandardChartered,theparentgroup,reiteratedthatitisconductingareviewofitshistoricalUSsanctionscomplianceandisdiscussingthatreviewwithUSenforcementagenciesandregulators。

ThisreviewfocusesprimarilyontransactionsrelatingtoIranintheperiod2001-2007,andinparticular,theircompliancewiththeU-turnframeworkestablishedbytheUSauthoritiestoenableongoingUSdollartradewithIranbyothercountries。

IthasrefutedtheallegationsmadebytheNewYorkStateDepartmentofFinancialServices(DFS)。

TheanalysisthatthegroupsharedwithalltheUSagenciesdemonstratesthatthroughouttheperiodthegroupactedtocomply,andoverwhelminglydidcomply,withUSsanctionsandtheregulationsrelatingtoU-turnpayments,thebankclaims。

Aswehavedisclosedtotheauthorities,wellover99。

9%ofthetransactionsrelatingtoIrancompliedwiththeU-turnregulations。

ThetotalvalueoftransactionswhichdidnotfollowtheU-turnwasunder$14m,StandardCharteredasserts。

StandardCharteredbelievesthattheinterpretationreflectedintheDFSsorderoftheU-Turnexemptionisincorrectasamatteroflaw。

ThebankinggroupsreviewofitsIranianpaymentsalsodidnotidentifyasinglepaymentonbehalfofanypartythatwasdesignatedatthetimebytheUSGovernmentasaterroristentityororganisation。

WeintendtodiscussthesematterswiththeDFSandtocontesttheirposition,theStandardCharteredstatementsaid。

Nevertheless,thebankssharestookadiveinHongKongtradingafternewsoftheallegationsbrokeandalsoopenedsharplylowerinLondon。

JH

NakedTextNakedText