Belfast Telegraph

Thursday 30 October 2014

Standard row earns rebuke for Deloitte

The consulting and accounting giant Deloitte received a sharp slap on the wrists from officials in New York state yesterday, with one of its arms agreeing to pay a $10m (£6.45m) fine and accepting a one-year ban from providing consulting work to financial institutions overseen by state regulators after its work for Standard Chartered on money-laundering issues was found wanting.

New York state's Department of Financial Services (NYDFS) said it had reached the agreement with Deloitte Financial Advisory Services (DFAS), which is part of Deloitte's operations in the US, over its "misconduct, violations of law, and law of autonomy during its consulting work" for the British bank.

The work concerned money-laundering issues, and the settlement comes after Standard Chartered last year agreed to pay out hundreds of millions of dollars in fines to authorities in the US over dealings with Iran.

DFAS accounts for around $500m (£322m) of the revenues of the broader Deloitte US business, which has annual revenues of around $12bn (£7.7bn).

The agreement means the division "will not accept any new engagements that would require" officials to approve it as an independent consultant or to authorise the disclosure of confidential information under certain provisions of New York's banking laws.

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