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Entries in Transactions (2)

Monday
Dec102012

Standard Chartered to Forfeit $227M to DOJ over Illegal Transactions

Hemera/Thinkstock(NEW YORK) -- Standard Chartered has agreed to pay hundreds of millions of dollars in fines for transactions involving clients in Iran, Sudan, Libya and Burma.

The British banking giant broke New York state banking laws by moving money through the U.S. financial system on behalf of clients based in these countries -- a violation of American sanctions.

Prosecutors called Standard Chartered's conduct "flagrant and unacceptable."  They said the business should have been rejected.

Court records said the bank told customers living in Iran or the other sanctioned countries to use a London banking code or otherwise conceal the true nature of the transactions.

Standard Chartered has agreed to forfeit $227 million to the Justice Department.

Copyright 2012 ABC News Radio

Wednesday
Jun082011

Senate Votes Down 'Swipe Fee' Delay Bill

Ryan McVay/Thinkstock(WASHINGTON) -- The amendment Wednesday on the processing fees that financial firms charge merchants every time a debit card is swiped -- which pitted retailers against bankers and some Democrats against fellow Democrats -- fell short in the Senate. The vote was six shy of the 60 needed for adoption.

Sen. Jon Tester's amendment, tweaked slightly Tuesday, would have delayed the implementation of the Dodd-Frank Wall Street reform law that banks charge retailers for debit card transactions.

Tester argued that small banks and credit unions will be less profitable, "penalized" and "wiped out" by this rule -- and if debit interchange fees are regulated, there first needs to be a better understanding of all the costs associated with transactions.

Tester said that the swipe fees amendment adopted last year will have unintended consequences for consumers -- who rely on small local banks and credit unions which are forced to make up for their losses by raising rates on checking accounts and charging higher fees for small businesses looking for loans.

The system is set to be implemented on July 21, without the changes Tester has called for.

Tester first proposed a two-year delay of the Fed's rules to allow adequate time to study the impact on small banks and rewrite the rules based on what is learned in the study. On Tuesday, the amendment was updated to a six-month study to see whether the rules can protect small banks, too -- looking at all the costs associated with debit card transactions.

Copyright 2011 ABC News Radio







ABC News Radio