10th Jan 2020 11:49
(Alliance News) - Standard Chartered PLC said Friday the New York Department of Financial Services has lifted the business restrictions imposed on the New York branch of Standard Chartered Bank.
The emerging markets lender also noted the division will also no longer be under supervision by the regulator.
Standard Chartered has been under monitorship since 2012, after it agreed to settle US charges over dealings with Iranian entities and deficiencies in its anti-money laundering controls - originating from the New York branch's clearing services operations in its subsidiaries in the United Arab Emirates and Hong Kong.
The New York state financial regulator had itself stopped monitoring Standard Chartered at the end of 2018 but had decided an independent consultant would continue to observe the New York branch.
As part of the original consent order, Standard Chartered was forced to hand over USD300 million as a civil monetary penalty.
Also, as part of the settlement, Standard Chartered agreed to suspend its US dollar clearing services in New York, which included halting US dollar clearing services at any of Standard Chartered Bank New York's subsidiaries. The branch was also not allowed to open new accounts for customers looking to use its US dollar clearing services.
StanChart said Friday these suspensions have now been lifted, as the independent monitoring has ended.
The independent monitoring could've been extended for a further year if the New York DFS was unhappy with StanChart's progress over 2019 in following the consent order.
New York holds one of StanChart's two largest clearing centres, with the other in London. Over 80% of Stan Chart's income in its Europe & Americas regions is derived from Financial Markets and Transaction Banking products. The region contributed USD1.67 billion in income in 2018, out of a group total of USD14.97 billion.
Shares in Stan Chart were up 0.7% in London on Friday at 713.00 pence each.
By Paul McGowan; [email protected]
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