Standard Chartered says sorry

The boss of Standard Charted said allegations it hid $250 billion worth of transactions with Iran "came as a complete surprise". Peter Sands said the figure from the regulator was an estimate. It apologised for the $14m of mistakes they admitted to.

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£6 billion wiped from value of Standard Chartered

A total of £6 billion has been wiped from the value of Standard Chartered amid fears it could lose its US banking licence. It comes after regulators branded the lender a "rogue institution" over its dealings with the Iranian government.

Standard Chartered Bank online
Standard Chartered Bank online Credit: Press Association

The bank saw shares plunge after regulators claimed it exposed the US to terrorists and drug kingpins by hiding 250 billion US dollars (£160 billion) of transactions with Tehran.

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Standard Chartered 'surprised' by US investigation

Standard Chartered has released a statement saying that the bank was already conducting a review over its Iranian transactions and the Group had been in touch with the New York State Department of Financial Services (DFS).

Standard and chartered said:

"The Group does not believe the order issued by the DFS presents a full and accurate picture of the facts.

"The analysis, that the Group shared with all the US agencies, demonstrates that throughout the period the Group acted to comply, and overwhelmingly did comply, with US sanctions and the regulations relating to U-turn payments.

"As we have disclosed to the authorities, well over 99.9% of the transactions relating to Iran complied with the U-turn regulations. The total value of transactions which did not follow the U-turn was under $14m.

"The Group is engaged in ongoing discussions with the relevant US agencies. Resolution of such matters normally proceeds through a co-ordinated approach by such agencies.

"The Group was therefore surprised to receive the order from the DFS, given that discussions with the agencies were ongoing. We intend to discuss these matters with the DFS and to contest their position.

"The Group takes its responsibilities very seriously, and seeks to comply at all times with the relevant laws and regulations. It is in this spirit we initiated this review and have engaged with the US agencies."

Standard Chartered's Hong Kong shares set to dip after Iran allegations

Standard Chartered has been accused of scheming with the Iranian government
Standard Chartered has been accused of scheming with the Iranian government Credit: Reuters

Standard Chartered's Hong Kong shares were set to open around 7.5 percent lower today, after New York's top bank regulator threatened to strip the UK bank's state banking licence because of alleged transactions tied to Iran.

Shares were indicated to open at HK$174, while Hong Kong's benchmark Hang Seng share index was set to start up 0.2 percent.

Standard Chartered's London shares fell 6.2 percent to 14.70 pounds after the New York State Department of Financial Services said the bank "schemed" with the Iranian government and hid around 60,000 secret transactions to generate hundreds of millions of dollars in fees over nearly 10 years.

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