The US has extended Standard Chartered’s deferred prosecution agreements (DPA’s) by another three years until 10 December 2017 to ensure that it complies with sanctions laws.

The extended agreement, filed by the US Department of Justice and the New York County District Attorney’s Office, means that the bank will face enhanced supervision for a longer period of time and could be hit with harsher penalties.

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Under the terms of the DPA, the US Justice Department and New York county district attorney’s office have installed a monitor inside the bank to evaluate and make recommendations regarding the Group’s sanctions compliance programme.

Standard Chartered said it would now work with the authorities to made further enhancements to its US economic sanctions programme to reach the standard demanded by the DPA.

The bank added that it remains committed to full co-operation with the authorities during this investigation, alongside an extensive programme of compliance improvements.

The amended agreement said the bank had taken steps to comply with the requirements of the original DPAs including the implementation of US sanctions policies and procedures, certified staff training, hiring of senior legal and financial crime compliance staff and implementing additional measures to block payment instructions.

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"The agreement also indicates that the group is cooperating with an ongoing US sanctions-related investigation but that additional time is needed to complete the investigation and determine whether any violations have occurred," the bank said.

The extension of the DPA comes at a time when chief executive Peter Sands is facing calls from investors to boost the performance of the bank which has issued three profits warnings in the past 12 month.

The bank has been investigated for failing to disclose some prohibited transactions to investigators in 2012 when it paid $667m and signed a two-year deferred prosecution agreement to resolve a criminal case against it.