StanChart Said to Brace for New Iran Fine of $1.5 Billion - Bloomberg

StanChart Said to Brace for New Iran Fine of $1.5 Billion - Bloomberg:

Standard Chartered Plc is bracing for a potential penalty of around $1.5 billion from U.S. authorities for allowing customers to violate Iran sanctions, people familiar with the matter said.

That amount is a preliminary assessment based on some of the communications between the bank and the regulators, the people said. Final discussions to resolve the matter have not yet begun, they said. The allegations relate to breaches dating from at least five years ago.

The shares sank after the potential fine exceeded some analysts’ expectations. American authorities have been keeping an eye on Standard Chartered since 2012, when the lender entered into a deferred prosecution agreement to resolve U.S. allegations that the bank facilitated business with Iranian parties. The U.S. extended the DPA in 2014.