Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Standard Chartered liable to legal action: UAE Central Bank  Join our daily free Newsletter

MENAFN - Khaleej Times - 25/08/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) The British-based bank will be liable to legal action by the account owners "because of the material and moral damage which is falling on them", the central bank said.

Banking group Standard Chartered is liable to legal action in the UAE after it agreed to close some customers' UAE accounts in an anti-money laundering settlement with US regulators, the UAE Central Bank said on Thursday.

Under the settlement, announced on Tuesday, the bank agreed to pay a 300 million fine, end high-risk relationships with small- and medium-sized business clients in the UAE, and suspend the processing of dollar-denominated payments for some clients at its Hong Kong unit.

The threat of further legal action in the UAE is a further complication for StanChart Chief Executive Peter Sands, who is fighting to retain the backing of investors after a series of transgressions and a decline in the bank's earnings.

"We have noted the announcement made by the UAE Central Bank. We always work with our regulators to achieve the right outcomes," the lender said in an e-mailed statement.

Shares in the bank were down one per cent by 1415GMT.

Under the said Consent Order, the bank was fined and is subject to certain procedures for not fulfilling the requirements of the New York State Department of Financial Services, among which closure of accounts relating to persons and companies holding nationalities that cannot transfer funds or deal in US dollar, as per the US law.

It is worth pointing out that the account numbers classified as such range from 1,400 to 8,000 accounts maintained at the bank branches in the UAE.

The central bank formed a team to review the records of accounts of these companies and their owners, to identify the violation as recoded in New York on every one of them.

The British-based bank will be liable to legal action by the account owners "because of the material and moral damage which is falling on them", the central bank said.

It added that its Consumer Protection Unit was willing to consider complaints from affected account holders. However it did not say if it believed any action was likely by account holders.

The central bank said that while Standard Chartered had not fulfilled US regulatory requirements, its UAE branches had committed "no significant violations" of international money laundering rules, such as the standards of the Financial Action Task Force, an inter-governmental body.

Standard Chartered said on Tuesday, after the settlement was announced, that it was in any case seeking to leave the business of serving small- and medium-sized clients in the UAE as part of a broad effort to sharpen its strategic focus.

"The UAE remains one of Standard Chartered's leading franchises globally and the move does not reflect a decreased focus on the country," it said in a statement.

 


Khaleej Times




  MENA News Headlines
 May 23 2015 - Qatar Participates in Arab Chiefs of Staff MeetingQatar News Agency
(MENAFN - QNA) The second meeting for Arab chiefs of staff started Saturday at the Arab League general secretariat. HE Chief of Staff Air Vice-Marshall Ghanim bin Shaheen Al Ghanim is leading ...

 May 23 2015 - Model Karlie Kloss stuns in standout designer gownArab News
(MENAFN - Arab News) CANNES France: Model Karlie Kloss gave celebrity guests at the amfAR annual charity gala more than a run for their money in the style stakes wearing a slinky diamante-encrusted ...

 May 23 2015 - Oman's ORPIC takes out USD910m loanMENAFN
(MENAFN) Oman Oil Refineries and Petroleum Industries Co. (ORPIC) has taken out a USD910 million ten-year loan from local and regional banks, Arab News reported.The money will be used to "meet ...

 May 23 2015 - Jordan's economy grows 3.8 percent amid political crisesMENAFN
(MENAFN) Jordan's economy is robust despite spillover violence along its borders from wars in Syria and Iraq, the central bank governor said, Arab News reported.Weak oil prices that have cut the ...

 May 23 2015 - Egypt to launch USD3b LNG tender over 2016-17MENAFN
(MENAFN) Egypt is set to launch what will be a highly sought after tender in early June to buy up to USD3 billion of liquefied natural gas (LNG) over 2016 and 2017, Arab News reported.Egypt has ...

 May 23 2015 - Iraqi forces clear path to key refinery: USThe Peninsula
(MENAFN - The Peninsula) Iraqi troops fighting Islamic State group forces have cleared a ground route into the country's largest oil refinery, the US military said Friday. "Iraqi Security Forces and ...

 May 23 2015 - Priest kidnapped in Homs region of Syria: NGOThe Peninsula
(MENAFN - The Peninsula) A priest of the Syriac Catholic Church in the western Syrian city of Homs was kidnapped Thursday along with one of his colleagues, the NGO l'Oeuvre d'Orient told AFP Friday. ...

 May 23 2015 - Suicide bomber in deadly attack on Shia mosque: SaudiThe Peninsula
(MENAFN - The Peninsula) A suicide bomber set off an explosion during weekly prayers in a Shia mosque of eastern Saudi Arabia leaving many dead Friday, the interior ministry said. "It has been ...

 May 23 2015 - Iraqi forces to launch Ramadi fightback in 'coming days'The Peninsula
(MENAFN - The Peninsula) Iraqi government and allied forces will launch an offensive aimed at retaking the city of Ramadi from the Islamic State group in the coming days, a spokesman said on Friday. ...

 May 23 2015 - Iraq- 55,000 have fled IS-captured Ramadi since mid-May: UNThe Peninsula
(MENAFN - The Peninsula) The United Nations said Friday that around 55,000 people had fled Ramadi since a surge by the Islamic State group in mid-May that landed the Iraqi provincial capital in the ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help