The lender said the new agreement did not install the independent monitor in the bank and with the review of their efforts to improve compliance with sanctions, meaning that the monitor`s mandate ended on March 31. The U.S. Attorney`s Office for the District of Columbia and the Department of Justice decided to extend a 2012 lawsuit agreement with British bank Standard Charted Bank by three years because it found it had failed to meet the requirements of the original agreement – and may even have committed additional sanctions violations. A crime of two criminal counters was filed today in the District of Columbia SCB illegal conspiracy to injure IEEPA. The first indictment alleges CBS`s involvement in a criminal conspiracy from 2001 to 2007; the United States charged SCB for the first time with this illegal behavior on December 10, 2012, and under the terms of a dpa entered the same day, the government agreed to postpone the prosecution and SCB agreed to pay a fine of $227 million. The second indictment alleges that SCB was involved in a criminal conspiracy to violate the IEEPA from 2007 to 2011. This latter conspiracy led SCB to deliberately process US dollar transactions through the U.S. financial system for the benefit of Iranian individuals and entities worth approximately $240 million. In the amended Dpa, the CBS acknowledged and assumed responsibility for its criminal conduct, agreed to extend the duration of the agreement for a further two years, and accepted additional commitments on cooperation, compliance and disclosure, among other things. At the same time, SCB reached a $327 million settlement agreement with the New York County District Attorney`s Office.
The group joined data protection services in December 2012 with the U.S. Department of Justice and the New York County Attorney`s Office. The contracts were then renewed until December 31, 2018. The conditions for the renewal of the data protection authorities are substantially identical to those of previous extensions and include an extension of the duration of the independent monitor until 31 March 2019. This extension has no bearing on December 31, 2018, which was appointed by the New York State Department of Financial Services and announced by the group on November 21, 2018. As Compliance Week reported earlier, both agreements were reached in addition to a $340 million civil fine imposed by the New York Ministry of Finance, which accused the bank of deliberately circumventing sanctions against the Iranian government. In August 2014, the DFS imposed a second civil fine – this time for $300 million – on the bank, which failed to resolve the anti-money laundering compliance issues that were needed by comparing the bank in 2012. SBM Offshore has confirmed that it has secured the end of its three-year agreement with the Ministry of Justice for FCPA violations, but the oil and gas services company is now facing a new corruption investigation by Swiss law enforcement agencies. In a press release, Standard Chartered said it was cooperating with “an ongoing investigation into U.S. sanctions” and that additional time would be required for prosecutors to determine whether violations were committed. As a result, the deferred policing agreements were extended until December 10, 2017. In its statement, Standard Chartered said the extended agreements ended by acknowledging that it had taken “a number of steps” to meet the original requirements and improve compliance with sanctions.
The agreement also shows that the group continues to cooperate with an ongoing investigation into U.S. sanctions, but that additional time is needed to complete the investigation. The group is committed to continuing its cooperation with the authorities and to implementing a comprehensive programme to improve their control of financial crime.