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

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

Today, I respectfully requested Attorney General @AGPamBondi to investigate Standard Chartered Bank's illicit payments to known terrorists and @NewYorkStateAG Tish James' inaction on the payments while approving bank licensure.https://t.co/l9CeNVEz82 pic.twitter.com/a5REsUhMav

— Rep. Elise Stefanik (@RepStefanik) August 15, 2025

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

Kasus 1MDB: Kasus Korupsi Terbesar di Malaysia

1MDB itu dana investasi negara yang diluncurkan tahun 2009 oleh Najib, Perdana Menteri saat itu.

Tahun 2015, terungkap bahwa Najib, sekitar 11.35 triliun Rupiah dari dana 1MDB mengalir rekening pribadinya.

Lewat suap, cuci uang,… pic.twitter.com/oGfnVYFen3

— Ardianto Satriawan (@ardisatriawan) February 18, 2025

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.

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