Standard Chartered Is Fined $13.6 Million by India’s AML agency

Standard Chartered Bank is fined $13.6 million by India’s anti-money laundering agency for 2007 deal. It is one of India’s biggest fine imposed on an overseas lender. The agency fined them for violating foreign exchange rules while taking over the local bank.

An eight-year probe found that Standard Chartered violated the so-called foreign exchange management act when it worked with a group of investors to buy a stake in Tamilnad Mercantile Bank.https://t.co/tfNCZiay9q

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An eight-year probe discovered that Standard Chartered broken the foreign exchange management act in 2007 when it worked with the group of investors to buy shares in Tamilnad Mercantile Bank. The foreign exchange management act monitors offshore financial transactions. This discovery was according to India’s enforcement agency in an August order.

In his order, the enforcement agency’s special director, Sushil Kumar said,
“Senior officials at Standard Chartered saw an investment in TMB shares as an opportunity that might ripen into eventually larger ownership for the bank”

According to order, Standard Chartered also acted as the custodian of the shares on the deal and Tamilnad Mercantile had similar charges and was fined almost 170 million rupees.

In fact, the representative for the British lender affirmed the receipt of the order, remarking that the bank was evaluating it. However, they were unable to comment further regarding it. The spokesman at Tamilnad Mercantile also refused to comment on the order.