This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/mar/21/standard-chartered-us-regulators-iran-sanctions

The article has changed 6 times. There is an RSS feed of changes available.

Version 2 Version 3
US regulators force Standard Chartered to retract Iran sanctions comments US regulators force Standard Chartered to retract Iran sanctions comments
(7 days later)
US regulators have forced Standard Chartered to retract comments by its chairman dismissing its breaches of US sanctions to Iran as "clerical errors".US regulators have forced Standard Chartered to retract comments by its chairman dismissing its breaches of US sanctions to Iran as "clerical errors".
Sir John Peace also apologised for remarks, which included describing the bank's breaches as not "wilful acts". He made the comments this month at its full-year results press conference.Sir John Peace also apologised for remarks, which included describing the bank's breaches as not "wilful acts". He made the comments this month at its full-year results press conference.
Last year regulators fined Standard Chartered £415m and reached deferred prosecution agreements with the bank to avoid further sanctions.Last year regulators fined Standard Chartered £415m and reached deferred prosecution agreements with the bank to avoid further sanctions.
In an unusual step, the bank was forced to issue a formal stock market announcement yesterday by US regulators. In a signed letter by Peace, the chairman said that during the press conference: "I made certain statements that I very much regret and that were at best inaccurate."In an unusual step, the bank was forced to issue a formal stock market announcement yesterday by US regulators. In a signed letter by Peace, the chairman said that during the press conference: "I made certain statements that I very much regret and that were at best inaccurate."
The statement appeared to demonstrate the influence of the US regulators by containing American spellings "willful" and "apologize".The statement appeared to demonstrate the influence of the US regulators by containing American spellings "willful" and "apologize".
At the press conference questions were asked "concerning individual employee conduct and compensation" following the deferred prosecution agreements.At the press conference questions were asked "concerning individual employee conduct and compensation" following the deferred prosecution agreements.
Peace had replied, when asked about bonuses for executives: "We had no wilful act to avoid sanctions; you know, mistakes are made – clerical errors – and we talked about last year a number of transactions which clearly were clerical errors or mistakes that were made."Peace had replied, when asked about bonuses for executives: "We had no wilful act to avoid sanctions; you know, mistakes are made – clerical errors – and we talked about last year a number of transactions which clearly were clerical errors or mistakes that were made."
But Thursday's announcement said: "My statement that Standard Chartered 'had no willful act to avoid sanctions' was wrong, and directly contradicts Standard Chartered's acceptance of responsibility in the deferred prosecution agreement and accompanying factual statement."But Thursday's announcement said: "My statement that Standard Chartered 'had no willful act to avoid sanctions' was wrong, and directly contradicts Standard Chartered's acceptance of responsibility in the deferred prosecution agreement and accompanying factual statement."
He was sitting alongside the chief ­executive, Peter Sands, and the finance director, Richard Meddings, when he made the remarks, and their names are also contained in the statement.He was sitting alongside the chief ­executive, Peter Sands, and the finance director, Richard Meddings, when he made the remarks, and their names are also contained in the statement.
"To be clear, Standard Chartered Bank unequivocally acknowledges and accepts responsibility, on behalf of the bank and its employees, for past knowing and willful criminal conduct in violating US ­economic sanctions laws and regulations, and related New York criminal laws, as set out in the deferred prosecution agreement," Peace said."To be clear, Standard Chartered Bank unequivocally acknowledges and accepts responsibility, on behalf of the bank and its employees, for past knowing and willful criminal conduct in violating US ­economic sanctions laws and regulations, and related New York criminal laws, as set out in the deferred prosecution agreement," Peace said.
"I, Mr Sands, Mr Meddings, and Standard Chartered Bank apologize for the statements I made to the contrary.""I, Mr Sands, Mr Meddings, and Standard Chartered Bank apologize for the statements I made to the contrary."
The bank would not elaborate on its statement or explain why it had been issued, other to than say that there had been "discussions" with US regulators.The bank would not elaborate on its statement or explain why it had been issued, other to than say that there had been "discussions" with US regulators.
Sands was forced to cut short his ­holiday last year when regulators published ­documents detailing the breaches of sanctions. One of the documents appeared to indicate that Meddings had said "fucking Americans" when warned about the potential breaches of sanctions, though the bank insists that this is not accurate.Sands was forced to cut short his ­holiday last year when regulators published ­documents detailing the breaches of sanctions. One of the documents appeared to indicate that Meddings had said "fucking Americans" when warned about the potential breaches of sanctions, though the bank insists that this is not accurate.
Sands has admitted that he has been awarded a bonus of nearly £2m for 2012, down 10%, while the bonus pool at the bank, which does most of its business in emerging markets, is down 7%.Sands has admitted that he has been awarded a bonus of nearly £2m for 2012, down 10%, while the bonus pool at the bank, which does most of its business in emerging markets, is down 7%.
The settlements were with the office of foreign assets control, the Federal Reserve, the US department of justice and the New York department of financial services (DFS).The settlements were with the office of foreign assets control, the Federal Reserve, the US department of justice and the New York department of financial services (DFS).
The period of the offences covered 2001 to the end of 2007 – making it difficult for the bank to claw back bonuses, as such ­provisions were not contained in contracts at the time.The period of the offences covered 2001 to the end of 2007 – making it difficult for the bank to claw back bonuses, as such ­provisions were not contained in contracts at the time.
The regulators found that $24m (£16m) of transactions processed on behalf of Iranian parties and a total of $109m to Burma, Sudan and Libya also appeared to be in violation of sanction laws. Standard Chartered has stressed that its New York office, during the period, processed $139tn in US dollar payments.The regulators found that $24m (£16m) of transactions processed on behalf of Iranian parties and a total of $109m to Burma, Sudan and Libya also appeared to be in violation of sanction laws. Standard Chartered has stressed that its New York office, during the period, processed $139tn in US dollar payments.
The bank has also stressed that it stopped any Iranian-dollar payment business in late 2006 and in the following year stopped any new business with Iranian entities.The bank has also stressed that it stopped any Iranian-dollar payment business in late 2006 and in the following year stopped any new business with Iranian entities.
Top savings accounts
Coventry BS
GE Capital Direct
Skipton BS
Powered by MoneySupermarket for the Guardian