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StanChart profit plunges as new legal problems emerge

A Standard Chartered sign is displayed on a Standard Chartered Bank branch, in Hong Kong, March 3, 2014.
Jerome Favre | Bloomberg | Getty Images
A Standard Chartered sign is displayed on a Standard Chartered Bank branch, in Hong Kong, March 3, 2014.

Standard Chartered is facing another substantial fine from U.S. regulators as it announced its first-half profits fell by 20 percent from the same period in 2013, to $3.27 billion.


Standard Chartered confirmed "certain issues have been identified with respect to the group's post-transaction surveillance system" in a statement. The issues are likely to result in a nine-figure fine from the New York State Department of Financial Services, led by Benjamin M.Lawsky, who previously tackled the bank over sanctions violations, according to reports.

Standard Chartered said that its focus on the conduct of its employees had intensified.

These particular issues are with its money-laundering control process, which is separate from its sanctions screening. Part of the penalty for the problem is likely to include an extension of the term of the monitor appointed to oversee the bank in the light of its earlier fine.

Standard Chartered flagged its profits fall in June, after falling revenues in its business, which is around three quarters emerging markets-focused.

Read MoreUS banks braced for large deposit outflows

The bank paid $340 million to the regulator in 2012, over transactions linked to Iran.

Chief executive Peter Sands, the longest-serving British bank chief executive, has faced question marks over his future following the bank's recent troubles. Its board said just a couple of weeks ago that "it is united in its support" for him and chairman John Peace.

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