Standard Chartered slapped a £46m fine for misleading the regulator

Standard Chartered fined £46m: ‘Lender misreported its liquidity position and failed to be open and cooperative’, says regulator

Standard Chartered has become the latest bank to be penalized by regulators after being fined 46.5 million pounds.

The Prudential Regulatory Authority (PRA), which is overseen by the Bank of England, said the FTSE 100 bank had repeatedly misplaced its liquidity and failed to be “open and collaborative”.

This was the largest fine ever imposed by the PRA in a case where it was the only one involved.

The prudential regulator, which is overseen by the Bank of England, said Standard Chartered had repeatedly erred in its liquidity position and failed to be “open and collaborative”.

The fine comes on the heels of a series of penalties imposed on banks including HSBC and NatWest in recent weeks.

PRA said Standard Chartered made five errors in reporting a critical liquidity measurement that was a key indicator of financial health between March 2018 and May 2019.

This meant that it was difficult to know how secure her finances were.

At one point, the bank failed to notify PRA of the error until it concluded an internal four-month investigation.

The punishment is humiliating for CEO Bill Winters, who was responsible at the time of the errors, and for Standard Chartered’s head of regulatory affairs, former Financial Conduct Authority Chairman Tracy McDermott.

The punishment comes two months after the Reserve Bank of India imposed a small fine on the Indian arm of the company for breaching its fraud reporting rules.

It comes after an embarrassing few weeks for British banks, as HSBC fined NatWest £64m and £265m for lax anti-money laundering controls. The city’s Financial Supervisory Authority led both investigations.

HSBC was found to have a catalog of failures in anti-money laundering systems that may have left terrorist financiers, fraudsters and modern-day slave traders undetected for eight years.

Humiliation: Bill Winters, CEO of Standard Chartered Bank, was responsible at the time of the errors

Humiliation: Bill Winters, CEO of Standard Chartered Bank, was responsible at the time of the errors

NatWest was fined after admitting it failed to prevent one company from laundering nearly £365m.

Criminals were depositing cash—sometimes in black box bags so full that they split—in dozens of branches.

At the beginning of December, HSBC, Barclays and NatWest were also forced to pay huge fines to the European Commission for their role in a forex trading cartel through a chat room called “Sterling Lads”.

The biggest fine ever imposed by Standard Chartered was a £842m settlement with US and UK financial authorities in 2019 for breaching anti-money laundering regulations and trading with countries such as Iran and Syria, in violation of sanctions.

“Standard Chartered’s systems, controls and oversight have fallen significantly from the standards we would expect from a system-wide important bank, and this is reflected in the size of the fine,” said Sam Woods, chief executive of the Accounting and Auditing Authority.

The penalty from PRA was originally £66.5m, but was reduced by about 30 per cent because Standard Chartered agreed to the settlement.

PRA has been monitoring Standard Chartered because in 2017 the regulator imposed stricter requirements on the bank’s holdings of US dollars.

She was concerned about how much dollars were left to the lender in the previous year and wanted to make sure the bank had plenty of reserves in case more would be drawn down.

Standard Chartered is located in the United Kingdom and is listed on the FTSE 100 Index of the London Stock Exchange. But it does most of its business in Asia – with Hong Kong its largest worldwide market – and Africa.

A Standard Chartered spokesperson said the bank ‘accepts the results’ of the credit risk analysis, adding that it has ‘collaborated with the PRA investigation and made significant improvements and investments in liquidity and regulatory reporting processes and controls and remains committed to strict regulatory controls’. reporting”.


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button