Indian depository receipts of Standard Chartered Bank declined more than 17 percent to hit Rs 85.85 after news report that the bank is under the scanner in the US for transactions with Iran.
A PTI report said the New York State Department of Financial Services has said in an order that the bank had $250 billion worth secret transactions with Iran which helped it reap hundreds of millions of dollars in fees.
The department has also alleged that the bank’s money laundering controls were deficient.
“SCB’s actions left the US financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes, and deprived law enforcement investigators of crucial information used to track all manner of criminal activity,” the department said.
Reuters
The development comes close on heels of the investigation report by the US Senate’s Permanent Committee on Investigations on HSBC, for exposing the US financial system to terrorist financing and money laundering risks.
The bank, however, has said the US regulatory order charging it with $250 billion worth secret transactions with Iran does not present the “full and accurate” picture and over 99.9 percent of its Iran-related business was in compliance with the relevant regulations.
