StanChart Couldn’t Tell Regulator How Some Rich Clients Got Rich - Bloomberg

StanChart Couldn’t Tell Regulator How Some Rich Clients Got Rich - Bloomberg:

Standard Chartered Plc, fined billions of dollars since 2012 for regulatory violations, has discovered that it cannot explain how some of its wealthiest clients acquired their fortunes and is reviewing thousands of customer accounts at its private bank.

A Dubai regulatory review two years ago, which hasn’t previously been reported, found that the private bank didn’t have documentation to show the sources of some clients’ wealth and in some cases lacked even basic data such as current addresses and phone numbers, according to people familiar with the situation. Similar failings have been identified at major hubs including Singapore, Hong Kong and London, the people said.

This isn’t the first failure of the bank’s anti-money-laundering efforts. In April, Britain’s financial watchdog fined the lender 102 million pounds ($127 million) for “serious and sustained shortcomings” in its client due diligence and monitoring, including in the United Arab Emirates between 2009 and 2014. That was part of a $1.1 billion settlement with U.S. and U.K. regulators that also took Standard Chartered to task over its handling of transactions that violated sanctions against Iran and other countries.