Standard Chartered Iran allegations investigated by justice department
Source: The Guardian
The US justice department is looking into allegations that Standard Chartered illegally moved $250bn of Iranian money around the global financial system, according to a source close to the investigation.
More than £8bn ($12.5bn) has wiped off the stock market value of the banking group since Monday, when a New York regulator issued a damning report alleging the bank had flouted US laws in its dealings with Iran. The bank's shares lost another 16% of their value Tuesday.
A source with direct knowledge of the investigation said the report was now being considered by the justice department, which could pursue a criminal case against the bank and its executives. The justice department works in conjunction with the Office of Foreign Assets Control (OFAC), which monitors and enforces US trade sanctions against countries including Iran.
In its report the New York State Department of Financial Services (NYSDFS) said it had evidence of similar breaches by the bank in Libya, Myanmar (also known as Burma) and Sudan, all countries under US sanctions. Both the justice department and NYSDFS declined to comment on the next stage of the investigation.