World Economy

Standard Chartered Faces New Investigation

Standard Chartered Faces New InvestigationStandard Chartered Faces New Investigation

Standard Chartered Plc shares fell as much as 3.8% after the Financial Times reported that the bank had dealt with Iranian clients in potential breach of US sanctions.

The British lender reportedly handled foreign-exchange transactions and generated revenue from Iranian firms and companies with links to the Middle Eastern country after a pledge to stop working with such customers in 2007, Bloomberg reported on Monday. The bank has previously said US authorities are probing possible breaches of sanctions.

“Standard Chartered is cooperating with an investigation related to possible violations of US sanctions,” a spokeswoman said in a statement. “Additional time is needed for the authorities to complete the investigation and determine whether any violations have occurred.”

Standard Chartered was fined $300 million by the New York Department of Financial Services in August last year for failing to flag suspicious transactions, adding to a $667 million settlement in 2012 over breaches of US bans concerning Iran.  Mending the bank’s reputation with regulators and preventing future compliance blowups are high on the agenda of new Chief Executive Officer Bill Winters, who replaced Peter Sands in June.