Bank to pay £217m over Iran row

Financial regulators in the United States have reached a settlement with Standard Chartered Bank over claims it schemed with the Iranian government to launder billions of dollars.

New York's financial regulator agreed a 340 million US dollars (£217 million) settlement with Standard Chartered over the alleged laundering of 250 billion dollars (£159 billion) from 2001 to 2007.

New York Superintendent of Financial Services Benjamin Lawsky said the British bank would pay the civil penalty to the state.

It will also install a monitor for at least two years who will evaluate the money laundering risk controls of its New York branch and take corrective measures. The state agency's examiners will be placed at the bank.

The bank had no immediate comment.

In a statement released on Tuesday night, Standard Chartered Bank said it "strongly rejects" and "contests" the New York regulators' portrayal of its transactions with Iranian banks.