Standard Chartered shares drop 8% after U.S. lawmaker alleges illegal payments

Source Cryptopolitan

Standard Chartered PLC stock plummeted on Friday by 8.21%, reaching 1,291.5. Its stock has also risen sharply this year to a near 12-year high earlier this week, as well as those of other European lenders. 

The bank’s shares dropped after a U.S. Republican lawmaker called for a probe into the bank over alleged financial misconduct. New York’s Representative, Elise Stefanik, wrote to Attorney General Pam Bondi to investigate the financial institution’s illegal payments to known terrorists. 

Stefanik accuses Standard Chartered of transacting illegal payments

Stefanik also noted that Standard Chartered had made $9.6 billion in illegal transactions to known terrorists. She alleged that China has been using the bank’s systems to purchase sanctioned Iranian oil.

According to the report, the transactions were hidden from required disclosures. The disclosures are under the current deferred prosecution agreement being supervised by the U.S. Attorney for Washington, D.C., and the Southern District of New York.

The lawmaker also called for a probe into Standard Chartered for allegedly evading ongoing sanctions. She said the lack of further action on the matter would cause the case to expire on Tuesday, August 19.

“Without further action on this case there is grave risk of additional funds being funneled to terrorist organizations that endanger the United States and the American people.”

Elise Stefanik, U.S. Representative for New York.

The lawmaker also called for a probe into the state’s Attorney General Letitia James’ inaction on the payments while approving the bank’s annual license. She alleged that terrorist financing experts and whistleblowers about the illicit payments notified James and her top officials. Stefanik said James’ failure to act raised questions regarding the illicit payments and their connection to the Biden Administration.

The New York Representative also revealed that she received reports from whistleblowers that disclosed that the bank used servers based in Newark, New Jersey, to execute the payments. She called for the appointment of the Acting U.S. Attorney for the District of New Jersey as Special Attorney to the Attorney General in charge of Standard Chartered matters. According to her, it was because there was an immediate national security risk presented by the financial institution’s activity and James’ failure to act against it.

The bank’s drop in share price came amid its recent buyback of shares on July 31. As previously reported by Cryptopolitan, Standard Chartered spent $1.3 billion on the initiative after reporting better-than-expected quarterly profits.

In 2019, the London-headquartered bank was also fined $1.1 billion by U.S. and UK authorities for money laundering and sanctions breaches. Standard Chartered agreed to pay $947 million to the U.S. over allegations it violated sanctions against countries including Iran, Syria, Sudan, Cuba, Zimbabwe, and Burma. The financial institutions also agreed to pay 102 million euros for anti-money-laundering breaches in the Middle East. 

The U.S. Treasury Department alleged that Standard Chartered processed illegal payments worth $438 million between 2009 and 2014. The majority of the transactions were linked to Iranian accounts from the bank’s Dubai branch. 

The financial institution acknowledged taking full responsibility for the violations and control deficiencies. Standard Chartered still put some blame on two former junior employees, alleging that they were aware some customers had Iranian connections.

Standard Chartered receives lawsuit for involvement in 1MDB scandal

The London-headquartered bank was also hit with a $2.7 billion lawsuit in early July. The lawsuit came from the lender’s alleged role in the 1MDB scandal, one of the world’s largest financial fraud cases.

Standard Chartered was accused of allowing the movement of billions of dollars that were stolen from Malaysia’s 1MDB fund. It is alleged that the bank did not sufficiently confirm the origin of the funds or where it was going.

According to the report, the financial institution allegedly allowed more than 100 suspicious transfers between 2009 and 2013, despite warning signs that the transactions might be illegal. 

The London-headquartered bank said the claims were without merit and it will vigorously defend any lawsuits initiated by the liquidators. 1MDB’s spokesperson said the board was pleased that court-appointed liquidators were taking action, which he said would benefit the victims of fraud, including 1MDB.

The smartest crypto minds already read our newsletter. Want in? Join them.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold selling pressure persists as traders lock in profits ahead of US NFP reportGold (XAU/USD) remains under some selling pressure for the second straight day and slides back closer to the overnight swing low during the Asian session on Thursday. The downtick lacks any fundamental catalyst and is likely to remain limited amid a supportive fundamental backdrop.
Author  FXStreet
Jan 08, Thu
Gold (XAU/USD) remains under some selling pressure for the second straight day and slides back closer to the overnight swing low during the Asian session on Thursday. The downtick lacks any fundamental catalyst and is likely to remain limited amid a supportive fundamental backdrop.
placeholder
Silver Price Forecasts: XAG/USD extends its reversal below $76.00Silver (XAG/USD) is trading lower in an otherwise calm market session on Thursday.
Author  FXStreet
Jan 08, Thu
Silver (XAG/USD) is trading lower in an otherwise calm market session on Thursday.
placeholder
Bitcoin briefly dips under $90,000 as profit-taking drags ETH, XRP and BNB lowerBitcoin briefly slipped below $90,000 after hitting $94,000 earlier in the week, with ETH falling to $3,120 as traders cited profit-taking, $150 million in long liquidations, and macro uncertainty including U.S. jobs data and tariff-related Supreme Court risks.
Author  Mitrade
Jan 08, Thu
Bitcoin briefly slipped below $90,000 after hitting $94,000 earlier in the week, with ETH falling to $3,120 as traders cited profit-taking, $150 million in long liquidations, and macro uncertainty including U.S. jobs data and tariff-related Supreme Court risks.
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple — BTC, ETH and XRP defend key support as rebound scenario stays in playBTC holds above $90,000, ETH hovers near $3,128 at the 50-day EMA, and XRP steadies above $2.07 as traders weigh rebound targets and key downside levels.
Author  Mitrade
18 hours ago
BTC holds above $90,000, ETH hovers near $3,128 at the 50-day EMA, and XRP steadies above $2.07 as traders weigh rebound targets and key downside levels.
placeholder
Bitcoin Trader Sticks to $76K Target as Early 2026 Rebound Loses MomentumBitcoin's recovery is in jeopardy with bearish predictions dominating sentiment as traders cite ongoing resistance and technical patterns hinting at further declines.
Author  Mitrade
19 hours ago
Bitcoin's recovery is in jeopardy with bearish predictions dominating sentiment as traders cite ongoing resistance and technical patterns hinting at further declines.
goTop
quote