Standard Chartered, one of Britain's most distinguished global banks, has been accused by United States regulators of laundering US$250 billion ($304.3 billion) from Iran and behaving like a "rogue institution", in the latest catastrophic blow to the reputation of the City of London.
New York state's Department of Financial Services accused the New York branch of the 160-year-old institution of leaving the US financial system "vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes" through its "flagrantly deceptive actions" between 2001 and 2010.
The regulator said the branch of the British bank had earned millions of dollars in fees by "conspiring" with Iran in about 60,000 "secret transactions".
This behaviour, said the regulator, had been "motivated by greed" on the part of Standard Chartered.
The regulator said it had uncovered evidence of similar schemes by Standard Chartered to conduct business with Libya, Burma and Sudan, all of which, like Iran, have been subject to sanction by the US. The bank has been threatened with having its US banking licence revoked and has been ordered to appear before the regulator soon to explain these apparent violations.