LONDON Aug 6 Standard Chartered Plc
said it faces another fine from New York's financial regulator
for problems related to detecting transactions vulnerable to
money laundering, piling more pressure on the Asia-focused bank
and its bosses.
The London-based bank on Wednesday said the New York
regulator had identified issues in its surveillance system -
part of its anti-money laundering systems and controls - which
was likely to result in a monetary penalty, remedial action and
an extension of a 2-year monitoring period.
The disclosure was made two years to the day that the New
York regulator Benjamin Lawsky said Standard Chartered had
broken U.S. sanctions on Iran by hiding transactions and called
it a "rogue institution".
It ended with Standard Chartered paying a $340 million
penalty to the New York regulator, and a similar amount to other
U.S. authorities. This time, the bank is likely to pay a penalty
of at least $100 million, a person familiar with the matter said
before the results were released.
Standard Chartered disclosed the investigation as it
reported a 20 percent fall in pretax profit in the six months to
the end of June to $3.3 billion. The bank had warned in June
that profits would be down by about a fifth as its investment
bank revenues were hit by weak trading activity.
(Reporting by Steve Slater and Matt Scuffham. Editing by Carmel