British Bank Allegedly Hid $250 Billion in Iranian Transactions

Arutz Sheva ^ | 7/8/12 | Rachel Hirschfeld

[Eleutheria5]

A major British bank, using its New York operations, “schemed” with the Iranian government for nearly a decade to launder $250 billion, exposing the United States financial system to terrorist entities, drug traffickers and corrupt regimes, New York’s top banking regulator charged on Monday.

The New York State Department of Financial Services (DFS) accused Standard Chartered, which the agency called a “rogue institution,” of hiding more than 60,000 transactions for Iranian banks and corporations, motivated by the millions of dollars it reaped in fees, The New York Times reported.

The bank’s senior management used the New York branch “as a front for prohibited dealings with Iran — dealings that indisputably helped sustain a global threat to peace and stability,” according to a regulatory order sent to the bank.

The order requires the bank to explain the apparent violations of law in a hearing later this month and justify why its New York license should not be revoked.

The bank said Monday night that it “strongly rejects the position and portrayal of facts” by the agency.

Standard Chartered officials debated whether to continue Iranian dealings and in October 2006, the top official for business in the Americas warned in a "panicked message" that the Iranian dealings could cause "catastrophic reputational damage" and "serious criminal liability,” Reuters reported.

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[Eleutheria5]

Sanctions. They're working./s

[rockinqsranch]

Which American financial institution was it that used its London branch to promote illicit transactions a few years ago? I can’t remember which institution, but only the action, but not in detail actually.

I believe that was something to do with derivatives, not Iranian assets though.

[vet7279]

Someone please tell me that this is not one of the banks we bailed out with taxpayer money.... How can we be sooooo stupid!

[Venturer]

I wonder who this bank forgot to pay off.

This one bank isn’t laundering all of the drug money in the US-—many banks are.

Someone didn’t get their pay off and decided to teach this one a lesson, The others will pay off after this.

[Eleutheria5]

It’s a British bank, so chances are it was bailed out with British taxpayer money. But I wouldn’t bet they went without US taxpayer money as well. Just don’t like the odds, so I keeps my money in my pockets.