Standard Chartered Bank fined £102.2m over AML

The Financial Conduct Authority (FCA) has fined Standard Chartered Bank over £100m for Anti-Money Laundering (AML) breaches in two higher risk areas of its business. This is the second largest financial penalty for AML controls failings ever imposed by the FCA.

The FCA found serious and sustained shortcomings in Standard Chartered’s AML controls relating to customer due diligence and ongoing monitoring. Standard Chartered failed to establish and maintain risk-sensitive policies and procedures and failed to ensure its UAE branches applied UK equivalent AML and counter-terrorist financing controls.

Standard Chartered’s failings occurred in its UK Correspondent Banking business during the period from November 2010 to July 2013 and in its UAE branches during the period from November 2009 to December 2014. Today, US authorities have also taken action against the Standard Chartered group for significant violations of US sanctions laws and regulations.

Standard Chartered did not dispute the FCA’s findings and exercised its right, under the FCA’s partly contested case process, to ask the FCA’s Regulatory Decisions Committee to assess the appropriate level of sanction. Standard Chartered’s agreement to accept the FCA’s findings meant it qualified for a 30 per cent discount.

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