Standard Chartered closes UAE accounts, faces possible legal action

Standard Chartered Shanghai Towers

Banking group Standard Chartered is liable to legal action in the United Arab Emirates after it agreed to close some customers' UAE accounts in an anti-money laundering settlement with U.S. regulators, the UAE central bank said on Thursday.

Reuters reports that under the settlement, announced on Tuesday, the bank agreed to pay a $300m fine, end high-risk relationships with small- and medium-sized business clients in the UAE, and suspend the processing of dollar-denominated payments for some clients at its Hong Kong unit.

The threat of further legal action in the UAE is a further complication for StanChart Chief Executive Peter Sands, who is fighting to retain the backing of investors after a series of transgressions and a decline in the bank's earnings.

'We have noted the announcement made by the UAE Central Bank. We always work with our regulators to achieve the right outcomes,' the lender said in an e-mailed statement.

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UAE central bank says StanChart liable to legal action

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