Standard Chartered reaches $1.1 bn US settlement on Iran sanctions

Standard Chartered will pay USD 1.1 billion to settle charges it processed transactions that violated US sanctions on Iran and other prohibited countries, US regulators announced Tuesday.

The penalty covers some $600 million in US transactions from 2008 to 2014 that originated at Standard Chartered's London and Dubai offices and went through its US branch, the New York State Department of Financial Services said in a statement.

The US Treasury Department said the agreement requires the bank to conduct regular risk assessments and provide ongoing sanctions compliance training.

Regulators said a majority of the problem transactions violated US sanctions on Iran, with a smaller number involving Syria, Sudan, Cuba and Burma. Treasury said in a statement the transactions involved Iranian companies, including a petrochemical firm.

"Global financial institutions serve as the first line of defense against money laundering and the financing of terrorist activities and those that fail to foster a strong compliance culture will be held accountable," said Linda Lacewell, acting superintendent of the New York agency.