International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Thursday, August 14, 2014

Standard Chartered's money laundering systems found faulty - how big a fine should it pay?

Standard Chartered Plc will soon begin sifting through a mountain of data for signs of possible money laundering or other criminal activity, as a result of faults in the software critical to its anti-money laundering compliance programme, two sources with knowledge of the matter said. ...

Because Standard Chartered clears about two million U.S. dollar transactions each month, the process of poring through the data will be "a huge piece of work" that could take months, said one of the sources. 

read reporter Brett Wolf's coverage on Reuters here: "Standard Chartered to scour records for money laundering, with penalty at stake"

Tim Worstall of Forbes presents a different view of the situation here:

The monitor put into the bank finds that the software system contains errors. OK, well, an error free software system is a rare beast indeed. So, what happens next? Is the bank advised of this error and aided in correcting it? No, another large fine is proposed.

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