$164 Million OFAC Penalty
On April 9, 2019, the Federal Reserve Board (Fed) fined Standard Chartered PLS and Standard Charter Bank (bank) $164 million for Office of Foreign Assets Control (OFAC) sanctions controls violations. The bank is a foreign bank based in London, England, with offices in New York. The bank received a Cease and Desist Order in 2012 for OFAC violations and was required to improve its OFAC policies, procedures, and training program. After the Cease and Desist Order was issued, the bank was found to have engaged in unsafe and unsound practices by failing to disclose the possibility of further OFAC violations related to online banking. In addition to the $164 million penalty, the bank must submit a revised OFAC compliance plan to the Fed and perform annual OFAC compliance reviews.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
Comments are closed.