Financial Transparency Coalition

WASHINGTON, DC – The allegations levied yesterday by the New York State Department of Financial Services against British banking giant Standard Chartered demonstrate a systemic, widespread pattern of disregard for anti-money laundering policies at one of the world’s biggest banks, according to Global Financial Integrity, a Washington, DC-based research and advocacy organization.

The allegations that Standard Chartered systematically and intentionally stripped information from wire transfers to hide the fact that it was processing U.S. dollar transactions originating from Iran, Libya, Sudan and Burma—in violation of U.S. sanctions—mirror recent charges against international banking giants HSBC and ING and come in the wake of several money laundering lapses at other banks such as Citibank, the former Wachovia bank, and even Standard Chartered, with respect to different violations.

“This is not a problem with one specific bank.  This is a systemic problem affecting the entire international banking community,” said Heather Lowe, legal counsel and director of government affairs at GFI.

A study conducted by British regulators last year revealed that seventy-five percent of UK banks investigated were not adequately in compliance with certain anti-money laundering regulations. “There is no reason to believe the situation is any different at American banks,” commented Lowe.

“While banks have faced fines in the wake of recent money laundering cases, it is important to remember that individuals make these decisions, not banks,” continued Lowe.  “We need to start holding them legally accountable for the decisions they have made that put people all over the world at risk.”

Lowe notes that following the Wachovia drug money laundering scandal, not one person at the financial institution was even prosecuted, despite the severity of the money laundering infractions that took place. “It is hardly dissuasive when the worst thing that happens to someone caught coordinating a large-scale, international money laundering scheme is that they are moved to a different part of the bank.”

To schedule an interview with Ms. Lowe, or for additional comments and questions, contact Clark Gascoigne at cgascoigne@gfintegrity.org or +1 202 293 0740 ext. 222.

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Contact:

Clark Gascoigne
cgascoigne@gfintegrity.org
+1 202-293-0740 ext.222

See Also:

• Read the complete order against Standard Chartered.
• Read Heather Lowe’s speech, “Players: The Role of Facilitators and Super-Fixers,” given on June 25th, 2012 before The Center for Complex Operations at the National Defense University, Washington DC.
• Global Financial Integrity Press Release, “After HSBC, GFI Calls For Regulators To Change The Incentives For The Financial Industry,” July 19, 2012.
• U.S. Senate Report, “U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History,” July 17, 2012
• “Anti-Corruption Coalition Requests US AML Review,” The Wall Street Journal, September 14, 2011.

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Global Financial Integrity (GFI) is a Washington, DC-based research and advocacy organization which promotes transparency in the international financial system.

For additional information please visit www.gfintegrity.org.

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