Standard Chartered faces three more years of US scrutiny for sanctions breaches

Standard Chartered will face three more years of scrutiny by US prosecutors for compliance with government sanctions against certain countries, according to documents filed on Tuesday that also noted another probe of the bank is under way.

The original deferred prosecution agreements, struck with the US Department of Justice and the Manhattan district attorney over the bank's violations related to US sanctions on Iran and other countries, was due to expire yesterday.

The agreement to extend the deals means that the bank will face enhanced oversight for a longer period of time and could be hit with harsher penalties.

The deferred prosecutions could be pulled back in the next three years and criminal charges against the bank could be filed, said a spokeswoman for the Manhattan district attorney.

In a statement, the bank said it agreed to the extension and would work with authorities to reach the standard required.

The US amendment said the bank had taken steps to improve its compliance programme and had hired new leadership and staff in its legal and financial crime-compliance offices.