"Republican politician proposes investigation into the StanChart sanctions matter"

Standard Chartered Bank Accused of Sanctions Evasion and Illicit Payments to Terrorists

Rep. Elise Stefanik, a Republican lawmaker from New York, has called for an investigation into Standard Chartered Bank over allegations of sanctions evasion and illicit payments to known terrorists. Stefanik has requested the appointment of a special attorney to handle the case, citing concerns that the existing investigation might expire without further action and warning of grave national security risks.

According to Stefanik's allegations, Standard Chartered made at least $9.6 billion in illicit payments to known terrorists and was used by China to purchase Iranian oil, circumventing sanctions. These transactions were allegedly hidden from disclosure under a deferred prosecution agreement overseen by U.S. authorities.

The bank has denied these allegations, stating that they are "entirely false" and have been rejected by U.S. courts multiple times. Standard Chartered has also stated that it will cooperate with any relevant authorities to assure them that the allegations are meritless.

In August 2025, Stefanik wrote a letter to Attorney General Pam Bondi, requesting her to probe the bank's activities. She has also requested the Acting U.S. Attorney for the District of New Jersey to be appointed as a Special Attorney to investigate Standard Chartered Bank.

The case stems from a 2012 civil lawsuit. Since then, the Justice Department has repeatedly declined to intervene, including in 2012, 2017, 2019, and a petition for writ of certiorari filed with the Supreme Court in 2024 was denied.

New York Attorney General Letitia James' office has declined to comment publicly on the situation. The existing case appears to be at risk of expiration without further action from authorities, as highlighted by Stefanik.

The allegations have raised concerns about potential coordination or negligence by Letitia James, as she was reportedly briefed in 2024 by experts and whistleblowers about these payments, and yet approved the bank’s licensure.

The risks related to this case are not limited to Regulations & Policy and Risk, but the specific nature of these risks is not detailed in the information provided.

As of now, no public confirmation exists that a new formal investigation has been launched following Stefanik’s calls. The investigation's status remains uncertain pending action by state and federal authorities.

"Republican politician proposes investigation into the StanChart sanctions matter"