Standard Chartered Bank fined 1 Billion Rupees

Anti-money laundering agency of India fined Standard Chartered Bank a record 1 billion rupees ($13.6 million) for violating foreign exchange rules.

An eight-year probe found that the global multi national bank has breached the foreign exchange act when it worked with a group of investors to buy a stake in Tamilnad Mercantile Bank Ltd. in 2007.

The case goes back to around 13 years prior when Tamilnad Mercantile moved 46,862 offers to abroad speculators, including GHI Ltd., Swiss Re Investors, FI Investments and Cuna Group, without looking for authorization from India's national bank, as indicated by the request. A portion of those offers were then moved to Sub-Continental Equities Ltd., an associate of Standard Chartered in April 2008, without the Reserve Bank of India's authorization, it said.