Yet another bank is being fined for violating U.S. sanctions by conducting business with Iran. According to Reuters, Asian-focused bank Standard Chartered is expected to pay $330 million to settle a case with U.S. regulators.
The Department of Financial Service (DFS), New York’s banking regulator, said Standard Chartered hid financial transactions with Iran. The bank agreed to pay the civil penalty after DFS issued a threat to revoke its license to do business in New York.
This case is a prime example of why even banks need to have a structured and automated approach to compliance. Whether or not they involve the actual exchange of goods, companies should screen all international transactions. This precaution not only safeguards brand reputation, but can also prevent the withdrawal of trading rights, which can result in a drop in stock price and profits.
