Standard Chartered Bank Sanctions Evasion Case
- Case is in the US Second Circuit.
- Found at least $9. 6 billion of illegal payments by Standard Chartered Bank (SCB) to Iranian and Hezbollah entities.
- NYAG Letitia James and the Federal Reserve are implicated for ignoring these payments and Treasury sanctions.
- The enforcement of Maximum Pressure is failing due to neglect by the Federal Reserve and NYAG.
- Call the Southern District of New York at 212-637-2200 to ensure the case continues.
Details of Illicit Payments
- At least $9. 6 billion identified as illicit payments made by SCB from its NYC branch to OFAC and known terrorist entities.
- Payments were revealed through internal trade reports by whistleblowers and involved transactions from SCB’s Dubai office.
- There may be over $100 billion more in illegal payments, specifically from SCB China, linked to oil and war materials.
- SCB hid these payments from required disclosures as part of its Deferred Prosecution Agreement.
Involvement by the NYAG
- NYAG was briefed on illicit payments in early 2024 but took no action.
- NYAG reapproved SCB’s annual banking license despite being informed of violations.
- Recordings from meetings show NYAG officials recognized the payments were new and undisclosed.
- Five senior NYAG staff, including Deputy Scott Spiegleman, attended these meetings.
- Spiegleman later joined IBM, which has contracts related to financial transaction systems.
Involvement by the Federal Reserve
- The Fed failed to block SCB payments to sanctioned entities, ignoring Treasury sanctions.
- Cheri McGuire, now COO of SWIFT, helped SCB hide currency trades while she was at SCB.
- SWIFT’s operations are under consideration for investigation since it is based in Virginia.
Recommendations
- Direct USA Pirro to prosecute SCB for breach of its Deferred Prosecution Agreement.
- Direct SDNY Clayton to intervene and prosecute SCB in ongoing case.
- Retract delegated authority from the Fed and return it to Treasury for Maximum Pressure enforcement.
- End the Fed’s agreement with international financial transaction organizations and merge operations into Treasury.
- Collect over $10 billion in penalties from SCB for sanctions evasion.
Next Steps and Background
- Whistleblowers provided 40,000 emails revealing attempts by SCB to conceal currency trades.
- The internal whistleblowers were terminated and are now appealing their case.
- Career DOJ officials have been blocking action on this case since 2024 to avoid embarrassment.
- Enforcement of sanctions could yield over $10 billion in settlements; further investigations could reveal even more.
- The same evidence of SCB’s payments is part of a UK Royals Court investor suit going to trial.
Allegations by Former SCB Whistleblowers
- SCB concealed over $9. 6 billion in payments to 92 OFAC / SDGT entities.
- SCB frequently violated self-reporting obligations and excluded its currency trades from disclosures.
- Whistleblowers realized they held internal trade reports showing SCB's evasion.
- After meetings with officials, evidence of new evasions led to claims of a coverup.
- False statements were allegedly made regarding inclusion of SCB's currency trades in prior settlements.
- New OFAC entities identified indicating further illicit activities facilitated by SCB.
Policy Implications
- The current administration has adopted a stance that overlooks the illegal payments.
- SCB maintains an ongoing role in illicit payments while hiding those activities.
- The goal is to enhance sanctions enforcement and deter illicit payments.
- Relevant evidence remains sealed by the court.
- Ongoing media coverage and a legal case in the UK are advancing towards trial.
https://www.thegatewaypundit.com/2025/07/her-biggest-scandal-yet-iran-china-are-circumventing/
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