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Former FBI Financial Crimes Division Chief Dennis Lormel and FBN’s Liz MacDonald on the accusations British bank Standard Chartered laundered money ...
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-- -- a developing story a London banker has reportedly been monitoring.
Money -- a rainy for the Iranian government for nearly ten years in new York state department of financial services.
Is accusing London based bank standard chartered of illegally doing business with Iran.
Okay I'm -- way to go to Dennis -- now right now he is a former FBI financial crimes chief.
I'm with us to discuss this topic right now.
How how how damning is the evidence do you think that you've seen so far.
Well if you look at the the right up that that the Europe banking commission that.
It is pretty damning and one thing that does concern -- though is that.
They acted by themselves without.
The Manhattan district attorney or without.
The federal government the FBI involved in the Justice Department so.
I'd like to see behind that what's there but.
On the face of the charges they're very serious.
Yeah it and but I I wonder what authority do you American.
Authorities alarm -- officials have at a case like this when it is a bank that is -- Outside of US I mean I certainly understand what our interest in the case is but as one of the emails from the bankers in London revealed.
They feel like we don't necessarily have authority to regulate something like that.
Transit through new York and and that the fact is that Iran needs access to US dollars.
So in that context they are doing business with with US banks.
And they have to they have to live up and and and be responsible for the regulations that now that we have out there.
I want to bring in fox business's Elizabeth McDonald who has been following this story just raced here from another security out.
Thank you so much for coming and -- some of the latest facts in this case for me and bring our audience up to speed.
What we know that the White House has indicated that the Treasury Department is in touch with the New York department of financial services.
And this is a unit that was launched by Andrew Cuomo top near exit official about a year ago.
And what we're seeing that.
What is -- top executives at standard chartered overseas actually got panicked -- -- according to New York State.
Investigation and the he's sent an email and what he said was look this is what's going on here is could potentially catastrophic.
Reputation of damage serious criminal liability is being alleged here.
And the response -- he got back and you pets talking about is this is this despite you blanking America's -- you to tell us the rest of the world that we're not gonna deal with the Iran and so.
They are at risk of having New -- -- rip up their license and not to operate in this state you know whether it effectively means is that standard chartered would no longer is you've been talking about.
Be able to clear dollar trades through its New York units that's a big deal -- did this doesn't just re -- can hear those two emails really show that disparity in state of mind between part of the bank that was operating here in the US and the other part of the bank that's obviously outside the US.
Would you say that email from the banker that's outside the US reflects how.
Non Americans feel about being limited in the sense -- does that tell you there's a lot of this going on.
Yes unfortunately that's true that they look at it as -- -- -- dictating to them what the regulations should be.
And and and they see you know that there's -- greed factor here because they see.
A tremendous business stream and a financial flow that they benefit from so when we put sanctions on Iran and they don't feel like they have a dog in the fight.
Than they see a lot of money going down the -- Yep but -- what is the danger of that civic danger is essentially that Lou this is according to -- -- -- near six -- that is leaving the US vulnerable to quote.
Terrorists like Hezbollah or Hamas that Iran has been -- statement healing -- you wanna put strain also yeah that's right weapons dealers drug kingpins for -- -- of weapons of mass destruction.
All that isn't what it what New York -- accusing standard chartered out.
And also they say look there's a culture of greed here a staggering cover up.
Where basic documents were forged and why it lost two basic life got Iran in a client's names and so more than at least -- -- fifty billion dollars.
Is what New York City is accused seeing -- chartered -- their chart above.
Flowing through the near -- and that's very important point that you make their that the way this was done it was that the deed records were actually change the wires that names on the wire transfers right we're actually change yak shows the president -- knowing that what was going -- yet exactly and you know what else stays in but analysts it's an important point make it.
This -- stretches back to 2001 and standard -- saying look we have a working with the Department of Justice of the New York fed on this issue.
And there essentially saying we are transparent and this.
99.9.
Percent of our transactions involving Iran are compliant it -- zero point 1% right.
That's it that -- standard -- our risk of losing its chance to operate here -- United States are saying they strongly object -- it's incorrect.
-- tell you something big in the way we're seeing this all play out.
The UK banks accused of libel or you know other banks like accused of you know wouldn't -- laundering drug money from Mexico when you have a Ron involved.
Well that means that the US regulators in Washington.
You don't -- hundreds of -- the motivation here right hundreds of millions of dollars and in this event that clears an estimate a 190 billion dollars in dollar trades a day so you know -- -- of those coming out swinging which is unusual because the other.
Banks have basically saying look we want to work with you in.
You know -- in their statement as in response.
They've been pretty tough in response to the New York State allegations Dennis.
