British Bank Accused of Hiding Transactions With Iranians

“Israel’s goal is the Somalisation of Syria, following the Somalisation of Iraq,” said Putin, and Netanyahu did not deny his interpretation

The New York State Department of Financial Services accused the British bank, which it called a “rogue institution,” of hiding the transactions to gain hundreds of millions of dollars in fees from January 2001 through 2010.

Shares of Standard Chartered have tumbled despite the bank denying allegations that it illegally "schemed" with Iran to launder money. Shares fell 15% in early London trade, after falling 16% in Hong Kong.

In a rare look inside a bank, the regulator described how Standard Chartered officials debated whether to continue Iranian dealings.

In October 2006, the top official for business in the Americas, whom the regulator did not name, warned in a "panicked message" that the Iranian dealings could cause "catastrophic reputational damage" and "serious criminal liability." A top executive in London shot back: "You f---ing Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians."

The reply showed "obvious contempt for U.S. banking regulations," the regulator said.

Standard Chartered has fended off threats by a New York regulator to revoke its banking licence for alleged breaches of US sanctions. Chief executive Peter Sands is however under intense pressure after the bank agreed to pay $340m (£220m) despite insisting that it had committed only minor breaches of the rules.

Barely 24 hours before the bank was due to attend a hearing with the New York department of financial services (DFS), the regulator announced the surprise settlementwhich also includes the installation a monitor for at least two years to evaluate the bank's risk controls. Inspectors from the DFS will be installed at the bank's office in New York and the bank will "permanently install personnel" in New York solely to ensure that it adheres to money laundering laws.