Bank Assessed Another $639 Million for OFAC Violations
As we blogged 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. That same day, OFAC itself announced a $693,023,750 settlement with the bank for OFAC sanctions violations. The violations were primarily related to transactions with Iran-related accounts and OFAC determined the bank did not voluntarily self-disclose the violations and the violations were egregious in nature. In addition to the monetary settlement, the bank also agreed to conduct an OFAC risk assessment and develop a methodology to identify, analyze, and address the particular risks it identifies.
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.
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