Standard Chartered Bank
|Standard Chartered Bank|
|Key People||Peter Sands, CEO|
Standard Chartered Bank is a London-based international banking group operating more than 1,700 bank branches in 70 countries. Their offerings include a variety of consumer, corporate, high net worth and Shariah-compliant financial products. Though based in London, the bank generates 90 percent of its profits from Africa, Asia and the Middle East.
Standard Chartered Bank was formed in 1969 through the merger of the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China.
The Chartered Bank was originally founded by James Wilson in 1853. It opened in Mumbai (Bombay), Kolkata and Shanghai in 1858 and in Hong Kong and Singapore in 1859. The bank originally facilitated trade focused on cotton, indigo, tea, rice, sugar, tobacco, hemp and silk from across India and Asia.
The Standard Bank was formed in the Cape Province of South Africa in 1862 by John Paterson and helped to finance diamond and gold projects in the 19th century. The bank expanded throughout much of Africa by the 1960s through organic growth and a merger with Bank of West Africa in 1965.
In 1987 Standard Chartered Bank sold off its stake in the Standard Bank, which now operates independently.
Money Laundering Settlements
In August 2012, Standard Chartered agreed to pay $340 million to the New York Department of Financial Services (DFS) to settle a money laundering probe alleging that the bank violated U.S. sanctions against Iran and other countries. The bank was accused of a decade-long scheme to aid Iranian clients in illegal transactions (totaling at least $250 billion) through deception, including falsifying records. As part of the settlement, the bank also agreed to install an independent monitor and examiners from the DFS. Accused in helping to conceal the fraud, Deloitte Financial Advisory Services (an affiliate of Deloitte & Touche LLP) settled with the DFS in June 2013 for $10 million. The firm also agreed to implement reforms and discontinue work at financial institutions regulated by the DFS for one year.
In December 2012, Standard Chartered Bank agreed to pay an additional $327 million to settle similar allegations by other U.S. agencies.
In August 2014, the company agreed to pay another $300 million fine as punishment for failing to fix anti-money laundering compliance problems as required by its 2012 settlement. The office of Benjamin Lawsky, New York State's financial regulator, traced much of the problem to the bank’s Hong Kong subsidiary and its branches in the United Arab Emirates. Under the deal, Standard Chartered’s New York branch must suspend its processing of payments in dollars for high-risk retail business clients in Hong Kong.
Growth in China
In June 2010, Standard Chartered Bank invested $500 million in the Agricultural Bank of China through an H-Share IPO in Hong Kong. They had previously signed an agreement to develop new business opportunities with the bank.
- Who We Are. Standard Chartered Bank.
- Our Businesses. Standard Chartered Bank.
- Our History. Standard Chartered Bank.
- Standard Chartered Still Faces Fed Probes After N.Y. Deal. Bloomberg.
- Deloitte settles with NY over Standard Chartered money laundering. Reuters.
- Standard Chartered Pays $327 Million on U.S.-Iran Transfers. Bloomberg.
- Caught Backsliding, Standard Chartered Is Fined $300 Million. The New York Times Dealbook.
- Clearing deal fuels London ambition to become renminbi hub. Financial Times.
- Standard Chartered to be cornerstone investor in Agricultural Bank of China. Press Release.