StanChart NY settlement prompts regulatory action

Author: Ashley Lee | Published: 4 Sep 2014

Hong Kong and the United Arab Emirates (UAE) regulators’ reactions to Standard Chartered Bank’s (SCB) recent $300 million settlement with the New York Department of Financial Services (DFS) show how local regulators are reacting to US extraterritorial enforcement.

The Hong Kong Monetary Authority (HKMA) and the UAE’s central bank both reacted quickly to the NY DFS’ announcement of Standard Chartered’s settlement, which was in relation to high-risk transactions originating from the bank’s branches in both jurisdictions.

The settlement follows transaction monitoring issues discovered by DFS’s independent monitor, in which the bank failed to detect potentially high-risk transactions originating from its Hong Kong and UAE subsidiaries.

Lawyers believe that regulators are working more closely than ever following the global financial crisis. But regulators have also had to contend with the increasing activity of US regulators.

Immediately after the DFS announcement – in the middle of the...



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