StanChart under pressure as report suggests Iranian connection

21st Sep 2015 09:55

(ShareCast News) - Standard Chartered was under pressure on Monday on the back of a press report suggesting the bank has been involved in transactions that could put it at risk of further sanctions penalties.The Financial Times said findings of its investigation into the bank suggest it continued to seek new business from Iranian and Iran-connected companies after committing in 2007 to stop working with such clients.It said it has identified transactions involving Iran that could put the bank, which specialises in Asia, the Middle East and Africa, at risk of penalties ranging from further fines to suspension or loss of its dollar clearing licence.People familiar with StanChart operations told the FT that these activities include foreign exchange transactions that would have involved the US dollar. The documents suggest that just a few months after an expensive settlement with US authorities in 2012, the bank was still internally reviewing its client list and was unable to determine in certain cases whether customers were Iranian or not.The FT said that while StanChart has relatively small operations in the US, the loss of its dollar clearing licence would be a big blow to the bank's ability to finance the trade, energy and cross-border activities that have become its main focus.StanChart has already shelled out hundreds of millions of pounds to US regulators and authorities for illegally hiding transactions with Iran and other countries under US sanctions.At 1015 BST, Standard Chartered shares were down 2.7% at 703p.