IC Markets

Standard Chartered Investigated on $1.4 Bn Cash Transfer

Standard Chartered Investigated on $1.4 Bn Cash Transfer

Standard Chartered BankThe Monetary Authority of Singapore (MAS) and Financial Services Commission of Guernsey are looking into the case of US$ 1.4 billion transfer of Standard Chartered PLC. The transfer took place in late 2015 from a private banking client before new tax transparency rules were adopted by Guernsey.

According to the current report, it has been found that the investment bank had conducted an internal inquiry and regulators were notified about the transaction impropriety. Questions were raised by the employees regarding transfer timing and whether proper vetting was carried out related to the money source.

Common Reporting Standard or CRS is a framework for tax data exchange that has been adopted by several countries for sharing their annual reports about the account of people subject to taxes. The suspicion arose as the transfers took place before the CRS was adopted by Guernsey. There was a growing concern among the employees why there were so many asset transfer requests from accounts that were otherwise static.

Reports from Bloomberg tell that focus of the internal investigation of Standard Chartered was to make sure whether sufficient scrutiny was done of funds and KYC or Know Your Customer was carried out or not. Bloomberg quoted several sources who wanted to remain anonymous that the bank itself had reported the matter to the regulators.

AP Archive

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The report also noted that the bank’s processes are looked into by the financial watchdogs in Asia and Europe. However, they have not suggested any collusion between the clients and employees for tax evading.

The reports from International Investment tell there were huge gaps between the stated earnings of few clients and the amount held by them in their respective accounts. Clients have annual income few thousands were holding millions in their bank account. The staff members from the bank said that the suspected transactions were flagged because a certain number of clients had tie-ups with military and hence were subjected to higher scrutiny level.

Bill Winters who is the new CEO of Standard Chartered Bank had to face some different challenges in his short tenure that includes violation of US sanctions in Iran, bribery allegations in Indonesia and Forex violations.

The only positive aspect of the $1.4 billion transfer to Guernsey is that bank had already notified about this matter to the regulators which would undoubtedly go in favour of Standard Chartered.

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Standard Chartered Investigated on $1.4 Bn Cash Transfer
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Standard Chartered Investigated on $1.4 Bn Cash Transfer
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MAS and Financial Services Commission of Guernsey are looking into the case of US$ 1.4 billion transfer of Standard Chartered PLC.
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Top10FX.net
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Ed Lamadrid

Ed Lamadrid

I'm Ed Lamadrid, a CPA, blogger and a forex trader. Welcome to Top10FX.net. Follow my website for the most trustworthy forex broker reviews and last minute financial trading news.


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