Another banking scandal has hit the United States, but this time American bankers aren’t to blame.
The British-based Standard Chartered Bank is accused of laundering over $250 billion for Iranian banks over the last ten years, allegedly with the support of upper management. It’s largely against American law to do business with Iranian banks. Standard Chartered broke those laws when they allowed some of these transactions to pass through New York.
The New York State Department, which is suing the banks, claims they wiped their records clean of the illegal dealings so American officials wouldn’t know they ever happened. There's no word yet on whether Standard Chartered is cooperating with authorities.
Edwin Truman, senior fellow at the Peterson Institute for International Economics, co-authored the book, “Chasing Dirty Money: The Fight Against Money Laundering.”