New York regulator to end supervision of StanChart for compliance failings
* Bank ends monitorship by New York DFS
* Still faces probe, possible fine over compliance failings
* Bank had failed to stop Iran-related financial
(Adds further details, StanChart statement)
LONDON, Nov 21 (Reuters) - New York's Department of
Financial Services (DFS) will end a period of monitoring of
Standard Chartered on Dec. 31, the DFS said on
Wednesday, bringing to a close one strand of the bank's
punishment for past failings in compliance controls.
Standard Chartered agreed to the supervision with the
regulator in 2012 as part of a wider settlement with U.S.
authorities in relation to the bank's dealings with Iran-related
entities. The bank agreed an extension to that deal, which saw
an indepedendent monitor installed in the bank to check on
progress in improving controls, in 2014 and again in April 2016.
That last extension was set to expire on Dec. 31 this year,
but the news that there are to be no further extensions to the
monitorship will be welcomed by StanChart bosses as they seek to
convince U.S. authorities they have learned from past mistakes.
The bank's problems over failing in the past to prevent
customers from breaching Iran-related sanctions are not over.
StanChart faces a separate investigation by U.S. authorities
into the extent to which it allowed clients with Iranian
interests to conduct transactions after 2007, as well as the
extent to which it shared such dealings with authorities at the
time of the 2012 settlement.
The end of the monitorship announced on Wednesday has no
bearing on that investigation, StanChart said in a regulatory
Media reports in October said the bank could face a further
$1.5 billion fine for those violations, in addition to the $667
million it paid in 2012 to settle alleged breaches between 2001
The reports said the fine amount was a preliminary
assessment based on some of the communications between the bank
StanChart CEO Bill Winters in an internal email to staff in
October criticised media coverage of the bank's efforts to
improve its controls.
(Reporting by Lawrence White; Editing by Adrian Croft and David
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