More On Legal & Compliancefrom The Advisor's Professional Library
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- Dealings With Qualified Clients and Accredited Investors Depending upon an RIAs business model and investment strategies, it may be important to identify “qualified clients” and “accredited investors.” The Dodd-Frank Act authorized the SEC to change which clients are defined by those terms.
ALBANY, N.Y. (AP) — New York's financial regulator said Tuesday that his agency has reached a $340 million settlement with Standard Chartered Bank to resolve an investigation into whether the British bank schemed with the Iranian government to launder $250 billion from 2001 to 2007.
The bank will pay the civil penalty to the state and will strengthen oversight of overseas transactions, New York Superintendent of Financial Services Benjamin Lawsky said.
The bank had no immediate comment Tuesday.
Standard Chartered will install a monitor for at least two years who will evaluate the money-laundering risk controls of its New York branch and take corrective measures, the department said. It also will permanently install personnel to oversee and audit offshore money-laundering monitoring, the agency said. State agency examiners also will be placed at the bank.
"We will continue to work with our federal and state partners on this matter," Lawsky said. A department hearing on the issue scheduled for Wednesday in New York City has been adjourned.
In a statement released Monday night, Standard Chartered Bank said it "strongly rejects" and "contests" the New York regulators' portrayal of its transactions with Iranian banks.
Lawsky earlier had signed an order that required the London-based bank to answer his questions following an investigation into "wire stripping," the practice of removing crucial identifiers in financial transactions.
The state agency called the bank a rogue institution and quoted one of its executives as saying: "You (expletive) Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians."
The bank conspired with its Iranian clients to route nearly 60,000 different U.S. dollar payments through Standard Chartered's New York branch "after first stripping information from wire transfer messages used to identify sanctioned countries, individuals and entities," according to the agency's order.
The order said the transactions provided the bank with millions of dollars in fees at a time when such trade was restricted. Lawsky said the scheme left the United States' financial system "vulnerable to terrorists."
The bank statement said "well over 99.9%" of the questioned transactions with Iran complied with all regulations. The few transactions that didn't amounted to $14 million, according to the bank. The bank said none of its Iranian payments was on behalf of any designated terrorist group.