Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Standard Chartered under review for money laundering issues. Again.

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Standard Chartered is in trouble again for money laundering issues.

Either I’ve been blogging long enough to see cycles repeating or the too-big-to-fail banks are getting more casual in their casual efforts to comply with US law. Or maybe I’m just suffering from confirmation bias.

Their software that is supposed to flag suspicious transactions allegedly failed to identify a million transactions that should have been reported to US authorities for review. That is according to the monitor installed to watch their compliance.

Unknown yet how many, if any, of the million suspicious wires were actually illegal.

Settlement negotiations are underway. Discussion in the air suggests a fine of $100M is possible. The bank’s chief executive has reportedly flown to New York to participate in the negotiations.

This follows a $340M fine in 2012 when Standard Chartered admitted in writing that they ‘repaired’ 59,000 wires going to Iran. Total face value of laundered money is $250B. That effort ran for 7 years and overlapped a previous enforcement action.

If there are illegal wires amongst the million that should have been flagged, will this generate actual enforcement effort? Even a deferred prosecution agreement would be a step up.

My background posts from last time around:

It is really weird that I get to start doing Francine McKenna’s routine of pulling out years-old writing to comment on a current fiasco. Well for the first time on my little blog, here are three posts I wrote in 2012 about Standard Chartered and money laundering:

Background articles for this round of settlement negotiations:

Written by Jim Ulvog

August 12, 2014, 6:58 am at 6:58 am

Posted in Other stuff

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