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Standard Chartered reaches $340 million settlement

Standard Chartered has agreed a $340 million settlement Photo: Bobby Yip / Reuters

British bank Standard Chartered has agreed a $340 million settlement with New York regulators over allegations it hid $250 billion of transactions with the Iranian government.

The 160 year old bank saw £6 billion wiped from its value amid claims it exposed the US to terrorists, drug kingpins and weapon dealers.

The New York State Department of Financial Services (DFS) accused it of keeping around 60,000 transactions secret from US regulators over nearly 10 years.

Robert Moore, Washington correspondent, reports:

A monitor will be installed at the bank for at least two years to evaluate money-laundering controls at its New York branch.

Standard, which employs 2,100 staff in the UK, previously said in a statement it "strongly rejects" the portrayal by the DFS.

It said the claims were inaccurate and that 99.9% of its dealings with Iran complied with regulation. saying that its decision to agree to pay the settlement was a pragmatic one made in the best interest of shareholders and customers.

DFS superintendent Benjamin Lawsky said: "In short, SCB (Standard Chartered Bank) operated as a rogue institution."

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