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What is a Chartered Bank?

What are the potential implications of the Standard Chartered Bank's scandal, in relation to the Iranian money-laundering scheme accusations?

  • What are the worst and best case scenario that might come out of this accusation? Looking to understand the impact this might have on the overall banking system (will this lead to more accusations?) and for the SC bank itself.

  • Answer:

    One hopeful implication of issues like this is that both financial institutions and  corporations who engage in any form of cross border trade must take this as a WAKE-UP CALL and make a legitimate investment in their both their Sanctions and AML Compliance processes by obtaining an INDEPENDENT evaluation of their compliance programs to insure that they are working properly and that they are not being circumvented or that they are unknowingly being gamed by others.  Its much the same reason you take your car to the mechanic or that you visit a doctor or dentist -- to get a check up to insure that there are no underlying issues or problems present that will cost you much more later on -- either from an actual violation and/or losses associated with reputational risk.

Shaun M Hassett at Quora Visit the source

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For SCB: Worst-case Scenario: Suspension of its Banking License. Hefty Fine. Possible freezing of its assets (though very unlikely) Criminal Charges against some of its employees who are involved. One of SCB's owners is Temasek, they will probably step-in and channel business to their other member banks (if not already doing so as of last week).

Faisal Khan

The standard chartered bank definitely put its reputation at risk. The New York  regulator is now pushing to suspend the license of SC in New York with possible serious criminal liability, if this happens, this would be the worst scenario. SC's net profit will diminished, losing its client in the emerging markets etc..

Louis Shenker

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