Standard Chartered is facing legal threat on UAE customer accounts
Standard Chartered faces legal action in the United Arab Emirates after agreeing to close some customers’ accounts in an anti money laundering settlement with US regulators, the UAE Central Bank warned yesterday.
As part of the £180million settlement announced on Tuesday with New York’s top banking watchdog, the emerging markets specialist pledged to suspend ‘high risk’ relationships with small and medium-sized business clients in the Middle East country.
Between 1,400 and 8,000 Standard Chartered accounts are likely to be affected and the UAE Central Bank is to trawl through all the accounts to check for any violations.
Legal threat: Standard Chartered pledged to suspend 'high risk' relationships with small and medium-sized business clients in the United Arab Emirates
The UAE added that the British-based lender is likely to face legal action from the account owners because of ‘the material and moral damage which is falling on them’.
The threat of further legal action will be another unwelcome distraction for chief executive Peter Sands, who is already under pressure from disgruntled investors about the firm’s disappointing performance.
The settlement with the New York Department of Financial Services comes just two years after Standard was hit with a £205million penalty for sanctions busting.
In a statement Standard said: ‘We have noted the announcement made by the UAE Central Bank.
We always work with our regulators to achieve the right outcomes.’
Shares fell 5.5p to 1215.5p.
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