Standard Chartered Chairman Retracts ‘Both Legal and Factual Incorrect Statements’ On Money Laundering Scandal
By Lianna Brinded | March 21, 2013 8:37 PM EST
Standard Chartered Chairman Sir John Peace has apologized for making 'both legally and factually incorrect' statements about the bank's admission to wilful criminal conduct when it came to breaking US sanctions laws by moving money through the US system for clients based in Iran.
In a statement on Standard Chartered's website, Peace said that he "made certain statements that I very much regret and that were at best, inaccurate," when he, and the group's CEO and finance director, spoke at a press conference at the beginning of the month.
Peace says that when asked by the press asked questions about individual employee conduct and compensation agreements, following the group's settlement with several US regulators over its role in money laundering for clients sanctioned under US law, he made a number of false statements, via phone, that he would like to now retract.
"In particular, I made the following statements in reference to a question regarding the reduction of bonuses for SCB executives [and said] 'We had no wilful act to avoid sanctions; you know, mistakes are made - clerical errors - and we talked about last year a number of transactions which clearly were clerical errors or mistakes that were made," he says.
"My statement that SCB "had no wilful act to avoid sanctions" was wrong, and directly contradicts SCB's acceptance of responsibility in the deferred prosecution agreement and accompanying factual statement. Standard Chartered, together with me, Peter Sands and Richard Meddings, who jointly hosted the press conference, retract the comment I made as both legally and factually incorrect," he adds.
The statement emphasised that Standard Chartered "unequivocally acknowledges and accepts responsibility, on behalf of the Bank and its employees, for past knowing and wilful criminal conduct in violating US economic sanctions laws and regulations, and related New York criminal laws, as set out in the deferred prosecution agreement.
Standard Chartered shares were little changed in early London trading, changing hands at 1,736 pence each, a 0.3 percent rise from Wednesday's close.
In August last year, Standard Chartered's shares plunged to their lowest level in four years when New York state authorities threatened to remove the bank's US licence, accusing it of "acting as a rogue institution" in its dealings with Iran.
Two weeks after this, Standard Chartered paid a civil penalty of $340m (€263m / £225m) to the New York State Department of Financial Services (DFS), in order to settle the regulator's charges that the UK-listed bank hid at least a quarter of a trillion US dollars' worth of transactions linked to Iran, which is subject to stringent US sanctions.
Earlier this month, Standard Chartered announced it cut its bonus pool by 7 percent to pay for the raft of fines, after unveiling its full year 2012 results.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Most Popular Slideshows
- Real Life ‘Frozen’: Snow Overwhelms The US, Kills 7; More To Come (Pictures)
- Angelina Jolie, Brad Pitt in Sydney for ‘Unbroken’ Red Carpet Premiere [PHOTOS]
- ‘The Walking Dead’ Season 5, Episode 8 Spoilers: Daryl Dixon Is Set To Burn The Place Down in ‘Coda’
- G20 Summit Awkward Moments: Putin Yawns, Mystery Bubbles Appear, F18 Drama Ensues
Join the Conversation
- Air Canada Expands Vancouver Boeing 787 Dreamliners To Beijing, Seoul, Shanghai, Tokyo-Narita Routes
- Canada Consumer Alert: Tim Hortons Prices Of Coffee, Sandwiches To Go Up Effective Nov 26
- Doomsday Seed Vault Safeguards More Marijuana Seeds
- Product Recall: Graco Recalls Baby Strollers in Canada, U.S. Due To Amputation Risks
- Travel Alert: Malaysia’s AirAsia Cuts Number Of Australian Flights
- Walmart Early Price Matching Special Event On Nov. 21, 2014 Matches Its Competitors' Black Friday 2014 Prices And Includes Exclusive Deals For Samsung LED HDTVs And iPad Air 2 [WATCH VIDEO]
- US Plane Flying Over Russian Skies Spotted; Vladimir Putin Ready For 'Practical Cooperation' With US
- Alleged 'Microsoft Lumia 1030' Front Panel Leaked With Capacitive Buttons; 'Xbox One' Owners To Get Free Goodies On Anniversary
- Nexus 6 Release Date And Price Under AT&T, T-Mobile And Sprint Listed
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Cold War 2: Russia, China And North Korea’s Blacklisted Company Fortify Alliance -- Reports