The New York Department of Financial Services (DFS) launched an attack on the bank this month, releasing an order on 6 August 2012 which claimed that Standard Chartered had conspired with the Government of Iran to launder money in exchange for millions of dollars in fees.

It added that the activity had allegedly lasted for almost ten years and involved approximately 60,000 hidden transactions to Iranian financial institutions.

The hearing scheduled for 15 August where Standard Chartered was due to face the allegations has been adjourned.

As part of the settlement, the UK-based bank has also agreed to permanently install staff for at least two years to report directly to the DFS.

The monitors will evaluate the money-laundering risk controls in the New York branch and implementation of appropriate corrective measures.

"The group continues to engage constructively with the other relevant US authorities. The timing of any resolution will be communicated in due course," Standard Chartered said in a statement.

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Source: Private Banker International