Standard Chartered to pay $340m penalty and install monitor over Iran laundering allegations

New York's financial regulator says his agency has reached a $340 million settlement with British bank over claims it schemed with the Iranian government to launder $250 billion from 2001 to 2007.

ALBANY, New York // New York's financial regulator says his agency has reached a $340 million settlement with Standard Chartered Bank over allegations it schemed with the Iranian government to launder $250 billion from 2001 to 2007.

New York superintendent of financial services Benjamin Lawsky says the British bank will pay the civil penalty to the state. It also will 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. State agency's examiners will be placed at the bank.

The bank had no immediate comment today.

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