Standard Chartered PLC (LON:STAN) has been fined US$1.1bn by US and UK authorities for breaching US sanctions against Iran.
The emerging markets bank said it accepted “full responsibility” for processing hundreds of millions of dollars’ worth of transactions for Iran-controlled entities between 2008 and 2014, despite there being a ban on doing so.
READ: Standard Chartered braces itself for hefty fine
It pinned most of the blame on two junior employees who it said worked with the Iranian clients to break the law and violate its own internal policies.
Standard Chartered added that it would have to set aside another US$190mln in the first quarter of 2019 after only taking a US$900mln provision at the end of last year.
The settlement with the US Department of Justice, the Financial Conduct Authority and several other agencies draws a line under the five-year long investigation.
The FTSE 100 firm had 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.
‘Completely unacceptable’
“We are pleased to have resolved these matters and to put these historical issues behind us,” said chief executive Bill Winters.
“The circumstances that led to today's resolutions are completely unacceptable and not representative of the Standard Chartered I am proud to lead today.
“Fighting financial crime is central to what we do and who we are; we do not tolerate misconduct or lax controls and we will continue to root out any issues that threaten the trust we have built over more than 160 years.”
Standard Chartered shares were up 0.9% to 651.6p in late afternoon trading in London.