Standard Chartered transaction monitoring gaps cost $300m penalty & US dollar clearing suspensions

Standard Chartered Bank [SCB] will pay a $300m penalty to the New York Department of Financial Services after it failed to remediate transaction monitoring deficiencies in line with a consent order agreed with the regulator in September 2012. [1] A new consent order [2], signed yesterday [19 August 2014] by SCB CEO Peter Sands, also requires the bank to suspend dollar clearing through its New York branch for high-risk retail clients in its Hong Kong subsidiary and close some business accounts in the UAE.