StanChart agrees extension of US sanctions scrutiny
10 Nov 2017

10 November 2017

Standard Chartered said it faces a further extension of its U.S. deferred prosecution agreements (DPAs) until July next year, in a sign it has yet to improve its sanctions compliance to the satisfaction of U.S. authorities.

StanChart first entered into the agreements with the U.S. Department of Justice and the New York County District Attorney’s Office in December 2012, accepting that it had broken laws by processing payments for sanctioned entities in countries including Iran, Burma, Sudan and Libya.

The bank avoided prosecution in exchange for a cash settlement of $327 million and an agreement with the U.S. authorities to improve its sanctions compliance.

The DPAs were extended for a further three years in 2014, as StanChart sought to strengthen its controls under the scrutiny of an independent monitor tasked with reporting on its progress.

Reuters reported in September the likely extension of the bank’s U.S. supervision, as sources at the bank said upgrading its technology worldwide to meet stringent U.S. standards was proving a daunting task.

By Lawrence White, REUTERS

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