| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : US Economy Last Updated: Aug 8, 2012 - 7:31 AM

Standard Chartered Bank hid $250bn worth of illegal Iranian transactions; Scheme "apparently aided" by Deloitte & Touche
By Finfacts Team
Aug 7, 2012 - 8:08 AM

Email this article
 Printer friendly page

Standard Chartered Bank, which was formed through the merger in 1969 of former British colonial banks - - The Chartered Bank of India, Australia and China, and Standard Bank of British South Africa - -  and came through the financial crisis unscathed, has been termed a "rogue institution'  that "schemed" with Iran's government to hide more than $250bn in illegal transactions for nearly a decade. An e-mail reveals that a group director said: "You fucking Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians." The alleged scheme was "apparently aided" by Deloitte & Touche, a Big 4 accounting firm.

The allegations were made in a 27-page order filed Monday [pdf] by Benjamin M. Lawsky, superintendent of the New York State Department of Financial Services.  The allegations are based on a 9-month investigation that included the review of more than 30,000 pages of internal memos, emails and other records, according to the order.

Just weeks after HSBC (Hong Kong and Shanghai Bank), another former British colonial bank, was accused of aiding Mexican drug cartels and Russian gun smugglers by a US Senate committee, Standard Chartered is revealed to be the subject of a criminal investigation  by the Federal Bureau of Investigation and Justice Department.

Standard Chartered said in a statement that it was surprised by the New York regulator's order and that it "strongly rejects the position or the portrayal of facts as set out in the order." The bank said it plans to contest the agency's position and that it is reviewing its compliance and communicating with numerous regulatory and law-enforcement agencies about its discoveries.

The New York regulator alleges that Standard Chartered evaded money-laundering reporting requirements by substituting false information on legally required money-transfer forms. Employees were provided with written manuals from senior management instructing them on how to fool money-laundering detection systems and regulators, the agency claims.

The regulator says the alleged scheme was "apparently aided" by Deloitte & Touche LLP, which the bank hired in 2004 to review its compliance procedures. The consulting firm was requested by Standard Chartered to delete from a 2005 report "any reference" to certain types of payments that might tip off regulators.

An email in the regulator's possession reveals that a Deloitte partner replied: "We agreed" to the request. The partner added that the firm drafted a "watered-down version." A Deloitte spokesman said Monday that the firm did its job "properly and had no knowledge of any alleged misconduct by" bank employees according to The Wall Street Journal.

The Journal says that Standard Chartered, the UK's fifth-biggest bank with $624bn in assets, has sprawling operations around the world, including more than 1,700 branches in 70 countries. Much of its profit comes from Asia, the Middle East and Africa. The New York unit clears about $190bn in US dollar-based transactions a day, making it an important cog of the UK bank.

Check out our new subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

It's a simple fact that in the prevailing economic climate, the provision of high quality content cannot be sustained through advertising alone. 

Business executives who put a premium on time and value high quality information, should use our service.

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

US Economy
Latest Headlines
US jobs rose by 215,000 in July; Unemployment rate stable at 5.3%
US economy grew at weak pace in Q2 2015 - Worst expansion since 1945
Decoupling of per capita GDP, productivity, private employment, and median family income in America
US economy stumbles again in 2015
Income gap highest in 30 years; No inequality rise in best-paying US firms
Fed minutes raise doubts about fragility of US recovery
Senate Democrats block trade deal authority for Obama
Five firms held 25% of top US non-financial companies cash pile in 2014
US added 223,000 jobs in April; Broad jobless rate at 10.8%
Investment struggles as dividends/ share buybacks at top US firms to exceed $1tn in 2015
US economic growth plunged in Q1 2015
Why the Fed may (almost) never raise interest rates
US jobless rate falls to 5.5%; Broad rate at 11%; Participation rate at 1978 level
US added 257,000 jobs in January; Broad jobless rate at 11.3%
US economy will soon see best years in a decade
US annualised GDP slowed sharply in final quarter 2014
US budget deficit to fall to 2.6% of GDP in 2015
US added 252,000 jobs in December; Jobless rate falls to 5.6%
US adds 321,000 jobs in November; Private sector adds 10.9m jobs in 57 months of growth
US manufacturing slowed in November
US retail spending over Thanksgiving weekend fell 11%
US consumer spending weak in October; Business investment fell again
US third-quarter GDP revised up to 3.9% annualised rate
After destroying banking secrecy US helps Swiss exporters
US oil imports from OPEC cartel at 30-year low
Tax-inverted "Irish" firm Actavis agrees to buy US Botox maker Allergan
US nonfarm payroll employment rose 214,000 in October' Jobless @ 6-year low
Swiss bankers await fallout of US tax evasion acquittal
Two PMI reports give contrasting trends on US manufacturing
US GDP increased at annualised 3.5% in third quarter of 2014
US city home price growth slowed again in August; Consumer confidence rebounded in September
US new orders for manufactured durable goods fell again in September
Loans to buy US shares at record highs
Global markets slide; US industrial production best in 3 years & jobless claims in 14-year low
US federal budget deficit dips to 2.9% of GDP in fiscal year 2014
US added 248,000 jobs in September; Jobless rate falls to 5.9%
US set to become world’s leading liquid petroleum producer again
Obama issues new rules to combat tax inversions
US Securities and Exchange Commission to pay $30m award to foreign whistleblower
Typical American household income in 2013 was below the 1989 level