By Julie DiMauro, Compliance Complete
NEW YORK, Sept. 9 (Thomson Reuters Accelus) - Standard Chartered Bank’s $300 million penalty from the New York Department of Financial Services (NYDFS) for compliance failings last month highlights the importance of having effective transaction monitoring procedures to meet regulatory requirements, particularly those pertaining to high-risk clients. But what are these transaction monitoring requirements, and who is a high-risk client?
Under the terms of the order with NYDFS, London-based Standard Chartered has to suspend the processing of U.S.-dollar transactions for certain high-risk retail business clients in Hong Kong and the United Arab Emirates until its transaction monitoring program is enhanced. The settlement comes two years after the bank agreed to pay $667 million to a variety of U.S. regulators to resolve allegations of sanctions violations concerning transactions linked to Iran. (more…)