Ministers have been urged to investigate allegations of sanctions-busting by the British bank Standard Chartered. This comes after the lender paid out more than 200 claimants following a Court of Appeal ruling that it would have to disclose sensitive documents.
The case centres around claims that Standard Chartered helped Iranian clients evade US sanctions over a number of years. While the bank has not admitted any wrongdoing, it has agreed to pay substantial sums to settle the legal action brought against it.
The Court of Appeal’s decision means that Standard Chartered will now have to reveal internal documents and communications that could shed light on the extent of the bank’s involvement in the alleged sanctions-busting activities. This has prompted calls from politicians and campaigners for a full government inquiry into the matter.
“There are serious questions that need to be answered here,” said Shadow Treasury Minister, Emily Thornberry. “If these allegations are true, then it represents a major breach of international law and a betrayal of the principles of fair global trade. The public deserves to know the full truth.”
Standard Chartered has a chequered history when it comes to regulatory compliance. In 2012, the bank was fined $667 million (£525 million) by US authorities for violating sanctions against Iran, Sudan and Libya. The latest case appears to stem from further sanctions-related issues in the years following that settlement.
Financial experts have warned that the reputational damage from this case could be significant for Standard Chartered. “Banks live and die by their credibility and trustworthiness,” said industry analyst, Rupert Finch. “If it’s proven that Standard Chartered was systematically helping Iranian clients get around sanctions, that would be a huge blow to their standing in the market.”
The bank has stated that it is cooperating fully with the legal process and is committed to transparency. However, with the prospect of more damaging revelations to come, the pressure is mounting on both Standard Chartered and the government to provide a full account of what happened.
