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