Standard Chartered PLC (LON:STAN) faces a hefty fine this week to settle claims for the violation of US sanctions against Iran.
The bank is expected to settle an investigation into sanction violations by Wednesday when a six-year deferred prosecution agreement (DPA) with US authorities is due to expire.
A DPA allows a company to settle charges with authorities without criminal prosecution by agreeing to certain conditions such as paying a fine and being monitored for a set period.
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In March, Standard Chartered announced it had set aside US$900mln to cover US and UK penalties. Most of the provision is expected to go towards the settlement of US sanctions violations.
The US investigation relates to claims of control failures that allowed clients with Iranian interests to conduct transactions through the bank between 2007 and 2014.
In its most recent annual report, Standard Chartered said the probe may result in “substantial fines” and “other compliance measures”, including restrictions on its operations.
The bank has already paid US$667mln in 2012 to settle claims it breached sanctions by secretly moving billions of dollars through the US on behalf of Iranian clients between 2001 and 2007.
Standard Chartered entered into DPAs with the US Department of Justice and the New York County district attorney’s office in 2012 and the deadline has been extended four times in recent years.
Most recently, the DPA was extended by 10 days from a March 31 deadline.
The fine will put another dent in Standard Chartered’s wallet after paying a £102mln penalty to the UK Financial Conduct Authority over “financial crime control” breaches in February.
Standard Chartered was also fined US$40mln in January by New York’s financial regulator for foreign exchange rate rigging between 2007 and 2013.