Reuters exclusively reveals Standard Chartered is due to start examining a mountain of data for signs of possible money laundering or other criminal activity, due to software faults, according to sources. As Hayley Platt reports, it could face penalties from regulators.
Two years ago Britain's Standard Chartered was fined over allegations of money laundering linked to Iran. Now Reuters exclusively reports the bank will soon start sifting through a vast amount of data for signs of possible money laundering or other criminal activity, according to two sources. It's a result of faults in the software used to track transactions and flag suspect ones. The outcome of the review could affect any penalties regulators impose on the bank for any lapses. Standard Chartered's review could take months. It clears around two million U.S. dollar transactions every month. New York's banking regulator first discovered holes in the bank's anti-money laundering net in 2012. Back then the bank was fined over $660 million for violating U.S. sanctions by hiding transactions linked to Iran. With the latest problem, Standard Chartered is once again under scrutiny from the U.S. regulator. It could lead to a penalty of over $100 million and could mean the bank is monitored for longer than planned. The Asia-focussed bank's latest woes come after a poor start to the year. Pretax profits were down 20 percent in the six months to June.