Standard Chartered shares fall after laundering allegations
Standard Chartered shares fall amid allegations of money laundering
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Tuesday, 07, Aug 2012 11:01
By Mark Fordham
Shares of Standard Chartered bank in the UK have tumbled dramatically amid claims that it had illegally "schemed" with Iran in order to launder as much as $250 billion (£160 billion).
In early London trade shares fell by as much as 15 per cent, while they fell by 16 per cent in Hong Kong.
This comes after the New York State Department of Financial Services (DFS) claimed that the UK-based bank had laundered the money over nearly a decade.
It stated that the bank had hidden transactions for "Iranian financial institutions" that were subject to US economic sanctions.
In response to this, Standard Chartered said it "strongly rejects the position or portrayal of facts as set out in the order" that was issued by the US regulator.
"The Group believes that the interpretation reflected in the DFS' order, of the U-Turn exemption - a federal regulation administered and enforced by federal authorities - is incorrect as a matter of law," the statement continued.