Standard Chartered controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
RBI fines Standard Chartered Bank for rules violations
Fine or penalty
The Reserve Bank of India fined Standard Chartered Bank Rs 1.95 crore for failures involving customer protection, cybersecurity, credit-card operations and large-exposure reporting. The RBI said the bank did not credit amounts involved in unauthorized electronic transactions, failed to report cybersecurity incidents on time, authorized direct sales agents to conduct KYC verification, and failed to ensure the integrity and quality of data submitted to a central repository.
Source excerpt
On the other hand, Standard Chartered failed to comply with the RBI guidelines on customer protection, cyber security, credit card operations and creation of a central repository for large exposures.
Mumbai: The Reserve Bank of India on Monday slapped a penalty of Rs 1 crore on State Bank of India and Rs 1.95 crore on Standard Chartered Bank for violations of its rules in separate incidents.
The RBI said an inspection by it found that the lender failed to credit (shadow reversal) the amount involved in the unauthorised electronic transactions and did not report cyber security incidents within the prescribed period.
2020
UK sanctions regulator fines Standard Chartered £20.47 million
Fine or penalty
The UK Office of Financial Sanctions Implementation fined Standard Chartered £20.47 million over loans to Denizbank that the regulator concluded breached EU restrictions. The regulator found that 70 of 102 examined loans were not facilitating EU trade; the fine covered 21 loans within its enforcement authority.
Company response
Ongoing disclosure — Standard Chartered
Standard Chartered says OFSI’s findings “are based on information that we self-identified and self-reported”.
Remediation — Standard Chartered
“As the penalty notice states, Standard Chartered did not wilfully breach the sanctions regime, acted in good faith, intended to comply with the relevant restrictions, fully co-operated with OFSI, and took remedial steps following the breach,” a spokesperson tells
Source excerpt
Standard Chartered says OFSI’s findings “are based on information that we self-identified and self-reported”.
“As the penalty notice states, Standard Chartered did not wilfully breach the sanctions regime, acted in good faith, intended to comply with the relevant restrictions, fully co-operated with OFSI, and took remedial steps following the breach,” a spokesperson tells
UK sanctions regulators have issued a record £20.47mn fine to Standard Chartered for allegedly breaching restrictions on loans to Russian financial institutions.
2020
Standard Chartered fined in India over foreign-exchange violations
Fine or penalty
India's anti-money laundering agency fined Standard Chartered 1 billion rupees for foreign-exchange rule violations connected to its work on the 2007 takeover of Tamilnad Mercantile Bank. The bank confirmed receipt of the order and said it was evaluating it.
India’s anti-money laundering agency fined Standard Chartered 1 billion rupees for foreign-exchange rule violations connected to its work on the 2007 takeover of Tamilnad Mercantile Bank. The bank confirmed receipt of the order and said it was evaluating it.
Company response
Ongoing disclosure — Standard Chartered
A representative for the British lender confirmed receipt of the order, adding that the bank was evaluating it and so unable to comment further.
Ongoing disclosure — Standard Chartered Plc
A representative for the British lender confirmed receipt of the order, adding that the bank was evaluating it and so unable to comment further.
Source excerpt
A representative for the British lender confirmed receipt of the order, adding that the bank was evaluating it and so unable to comment further.
An eight-year probe found that Standard Chartered violated the so-called foreign exchange management act -- which monitors offshore financial transactions -- when it worked with a group of investors to buy a stake in Tamilnad Mercantile Bank Ltd. in 2007, according to an August order from India’s enforcement agency that was seen by Bloomberg.
An eight-year probe found that Standard Chartered violated the so-called Foreign Exchange Management Act - which monitors offshore financial transactions - when it worked with a group of investors to buy a stake in Tamilnad Mercantile Bank Ltd. in 2007, according to an August order from India's enforcement agency that was seen by Bloomberg.
2020
Standard Chartered fined for alleged FEMA violations
Fine or penalty
India's Adjudicating Authority under FEMA imposed penalties totaling Rs 100 crore on Standard Chartered for alleged FEMA violations related to escrow-account activity and collateral guarantees involving Tamil Nadu Mercantile Bank shares. The article reports that the bank was found guilty of the violations.
Source excerpt
The Adjudicating Authority under FEMA has imposed penalties worth Rs 100 crore on Standard Chartered, Rs 17 crore on Tamil Nadu Mercantile Bank Limited (TMBL) and Rs 35 crore on its former TMBL chairman and director MGM Maran, informed Enforcement Directorate (ED).
Meanwhile, Standard Chartered has been guilty of FEMA violations for opening the SCB Project Windmill (Sale Consideration) Escrow Account, without getting RBI's permission.
2020
ED imposes penalties on Standard Chartered Bank and Tamilnad Mercantile Bank
Fine or penalty
India's Enforcement Directorate said its Adjudicating Authority fined Standard Chartered Bank Rs 100 crore and Tamilnad Mercantile Bank Rs 17 crore under the Foreign Exchange Management Act. The report says Standard Chartered was held guilty of contraventions involving an escrow account, deposits and shares, while TMB was penalized over recording share transfers without the required approvals.
India’s Enforcement Directorate said its Adjudicating Authority fined Standard Chartered Bank Rs 100 crore and Tamilnad Mercantile Bank Rs 17 crore under the Foreign Exchange Management Act. The report says Standard Chartered was held guilty of contraventions involving an escrow account, deposits and shares, while TMB was penalized over recording share transfers without the required approvals.
Source excerpt
In his adjudication order, the Special Director, ED, Southern Region, imposed a penalty of Rs 11.33 crore on TMB for recording in its books the transfer of 46,862 shares of the bank in the names of seven foreign entities
The Standard Chartered Bank was held guilty of contravening FEMA for opening the Standard Chartered Bank Project Windmill (Sale Consideration) Escrow Account without RBI's prior permission and for allowing deposits of Rs 113 crore and for having held 1,12,151 shares of TMB in the said escrow account..The Standard Chartered Bank was levied a penalty of Rs 34 crore for the above contraventions..Another Rs 66 crore penalty was levied on the Standard Chartered Bank for providing collateral/guarantee taking into custody of TMB shares and original sale deeds of land in lieu of which Standard Chartered Bank, Mauritius, granted a loan of $55.40 million (equivalent to Rs 221 crore) to three foreign entities -- Katra Holdings Limited, Mauritius, RST Limited, Cayman Islands, and GHI I Limited, Cayman Islands, without any special permission from the RBI.
The Enforcement Directorate (ED) said on Friday that the Standard Chartered Bank has been fined Rs 100 crore by its Adjudicating Authority under the Foreign Exchange Management Act, 1999 (FEMA)..The Adjudicating Authority has also fined Tamilnad Mercantile Bank (TMB) Rs 17 crore
2014
Anti-money-laundering control deficiencies
The New York Department of Financial Services imposed a further US$300 million penalty over compliance failures involving potentially high-risk transactions associated with clients in Hong Kong and the United Arab Emirates.
2012
Iran-related sanctions and money-laundering allegations
New York regulators accused Standard Chartered of concealing approximately US$250 billion in transactions involving Iran and alleged serious weaknesses in controls. The bank settled, paid US$340 million and accepted independent monitoring.
1994
Improper gifts and payments allegations
Reports alleged that an executive in the metals division had bribed officials in Malaysia and the Philippines. The bank acknowledged discrepancies in expense claims involving gifts that violated its rules.
1994
Hong Kong share-price support investigation
Hong Kong regulators found that the bank's Asian investment-banking operation had illegally helped support the prices of new shares underwritten for six companies. The bank admitted the offence, apologized and was barred from underwriting Hong Kong IPOs for nine months.
1992
Mumbai deposit-funds diversion investigation
Indian regulators charged several Standard Chartered employees with illegally diverting depositors' funds for stock-market speculation. Fines and loss provisions reportedly imposed a major financial burden on the bank.