Aug 14 (Lagos) - Standard Chartered Plc has agreed to pay a fine of $ 340 million to settle allegations by New York's bank regulator that it hid transactions linked to Iran. The resolution also came after London-based Standard Chartered's chief executive, Peter Sands, flew to New York to take control of negotiations and less than 24 hours before the bank was scheduled to defend itself at a high-stakes hearing.
Standard Chartered confirmed that the two sides had agreed the terms of an agreement, including the payment of $340 million. "A formal agreement containing the detailed terms of the settlement is expected to be concluded shortly," the bank said.
In addition to the civil penalty, Lawsky said the bank agreed to install a monitor for at least two years to check on money-laundering risk controls in its New York branch.
Shares of Standard Chartered had fallen by more than 17% when these accusations surfaced on Aug 6. It will be interesting to watch what happens tomorrow when the market opens.
reporting for easykobo.com on Tuesday, Aug 14 2012 from Lagos, Nigeria