Companies & Sectors
Trio, including OBC officer, gets jail for Rs8 crore bank fraud

A special court imprisoned the three, including one officer from Oriental Bank of Commerce, for cheating the bank to nearly Rs8 crore through fraudulent manipulation of bank drafts

 
New Delhi: A former officer of Oriental Bank of Commerce (OBC) was sentenced to one-year imprisonment by a special court of Central Bureau of Investigation (CBI) for cheating the bank to the tune of nearly Rs8 crore through fraudulent manipulations of bank drafts, reports PTI.
 
The judge also sent Vikaspuri-resident Uma Bhatla and Manjeet Kumar, Proprietor of Shivani Jewellers at Karol Bagh, to three-year in jail.
 
All the three accused were imposed with fine as well.
 
"The investigation revealed that Ram Kumar, the then officer of Oriental Bank of Commerce, used to provide stolen book of blank demand drafts to Uma Bhatla who used to fabricate and forge these drafts with high value amount and Manjeet Kumar used to get the amount of these drafts credited in his firm's bank account," a CBI spokesperson said.
 
The court has also declared two other persons, who are at currently absconding, as proclaimed offenders.
 

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Standard Chartered to pay $327 million to settle US sanctions case

Standard Chartered will pay $327 million to settle charges it violated for US sanctions on Iran, Myanmar, Libya and Sudan

 
Washington: British bank Standard Chartered will pay the US $327 million to settle charges it violated US sanctions on Iran, Myanmar, Libya and Sudan, the US Treasury announced, reports PTI.
 
US authorities said the bank had stripped messages on financial transfers routed through US banks of information that would show the beneficiaries were businesses and entities that fell under US sanctions.
 
The fines from the Treasury's Office of Foreign Assets Control (OFAC) and other US federal and local regulators took to $667 million the total the bank has been charged for sanctions violations.
 
In August the New York state banking watchdog fined Standard Chartered $340 million in the same investigation, saying it hid 60,000 transactions with proscribed Iranian clients worth $250 billion over 10 years.
 
"Today's settlement is the result of an exhaustive interagency investigation into Standard Chartered Bank's attempts to violate US sanctions programs through the 'stripping' from payment messages of critical information," said OFAC Director Adam Szubin in a statement.
 
The sanctions avoidance involved mainly the bank's London head office and its branch in Dubai, which masked the details of messages so US authorities would not see the real identity of those sending and receiving the payments.
 
"As a result, millions of dollars of payments were routed through US banks for or on behalf of sanctioned parties in apparent violation of US sanctions," OFAC said in a statement.
 
OFAC added that the settlement also covered eight apparent violations of US sanctions on druglords. 
 
In August 2003, the bank wrote in a letter to the Treasury Department's Office of Foreign Assets Control that the use of cover payments for transactions related to sanctioned countries was contrary to its global instructions.
 
However, the bank used the cover payment method to effect billions of dollars in payments originating from Iran, Libya, Burma and Sudan through its New York branch.
 
During an extensive examination, the bank failed to disclose to the Federal Reserve Bank of New York and New York Department of Financial Services that it was processing billions of dollars of non-transparent payments for customers in sanctioned countries.
 
Due to the actions taken by the bank to remedy its conduct and its willingness to acknowledge responsibility for its actions, the Justice Department would recommend the dismissal of the criminal complaint in 24 months provided the bank fully cooperates with and abides by the terms of the deferred prosecution agreement, the Justice Department said.
 
In a separate agreement entered into with the Federal Reserve, Standard Chartered would have to improve its programme for compliance with US economic sanctions and anti-money-laundering requirements.
 

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HSBC to pay $1.9 billion to settle US claims: report

The figure includes nearly $1.3 billion, a record amount for a bank, as part of a deferred prosecution agreement besides a civil fine of more than %650 million that HSBC may have to shell out

 
Washington: US authorities plan to announce a record $1.9 billion settlement with British bank HSBC to end allegations of money laundering, reports PTI quoting a story from The Wall Street Journal website.
 
The deal could be announced as early as today in New York, officials told the Journal.
 
Citing people familiar with the matter, the Journal said yesterday that the figure includes nearly $1.3 billion, a record amount for a bank, as part of a deferred prosecution agreement.
 
The London-based bank also would pay a civil fine of more than $650 million, according to people briefed on the issue, the newspaper said.
 
US lawmakers have accused the global bank of giving Iran, terrorists and drug dealers access to the US financial system.
 
Criminal investigators have been pursuing some of the same allegations highlighted in the Senate probe, the Journal noted.
 
HSBC in July admitted to poor anti-laundering controls.
 
The settlement would resolve investigations by the Justice and Treasury departments and other federal agencies, as well as the Manhattan district attorney.
 
As part of the HSBC settlement deal, the Journal said, citing a government official, it will admit to violating the Bank Secrecy Act and the Trading with the Enemy Act.
 
The US Treasury declined to comment on the Journal report.
 
In early November HSBC said it had increased the amount set aside for fines linked to money-laundering in the United States to $1.5 billion.
 
The Journal report came the same day the US Treasury announced that another British bank, Standard Chartered, would pay $327 million to settle charges it violated US sanctions on Iran, Myanmar, Libya and Sudan.
 
For Standard Chartered, the fines from the Treasury and other US federal and local regulators brought to $667 million the total it has been charged for sanctions violations. 
 

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