Accountancy firm Deloitte was fined $10 million by New York State on
Tuesday for its misconduct in advising Standard Chartered Bank over
money laundering in Myanmar, Iran, Libya and Sudan.
According to the Agence France-Presse (AFP) news service,
Deloitte LLC’s financial-advisory services unit now faces a one-year ban
from consulting New York-regulated banks after failing to independently
advise the UK Bank on its transfers with clients in Myanmar among
others that took place primarily between 2001 and 2007.
The ban comes six months after the biggest of the big four accounting firms established a presence in Myanmar with an Independent Correspondent Firm (ICF) through leading local Myanmar professional services firm, Myanmar Vigour Co Ltd.
“We are delighted to be working with Deloitte, an organization so
committed to delivering world class professional services,” said Soe
Win, Managing Director of Myanmar Vigour, in January.
Money laundering continued despite the fact Deloitte Financial
Advisory Services took up the role of independent advisor in 2004 to
help Standard Chartered comply with money laundering statutes on
requirement by the New York Department of Financial Services.
Standard Chartered was fined $667 million by federal and New York
State authorities last year for permitting hundreds of billions of
dollars to be laundered through its US branch by clients from Iran,
Myanmar, Libya and Sudan, in violation of US sanctions on the countries.
The department said the fine, which the company agreed to in a
settlement, was to cover its "misconduct, violations of law, and lack of
autonomy" in advising Standard Chartered.
"At times, the consulting industry has been infected by an 'I'll
scratch your back if you scratch mine' culture and a stunning lack of
independence," said Benjamin Lawsky, New York superintendent of
financial services, in a statement.
In a statement Deloitte emphasized that its advisory unit was not accused of participating in the laundering.
source: Mizzima
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