Standard Chartered: August 2012 Enforcement Action

David Scantling filed this request with the Department of Financial Services of New York.
Status
Rejected

Communications

From: David Scantling

To Whom It May Concern:

Pursuant to the New York State Freedom of Information Law (1977 N.Y. Laws ch. 933), I hereby request the following records that were referenced in the Enforcement Action and Agreement between the New York Department of Financial Services ("DFS") and Standard Chartered Bank Plc (including its New York Branch) (collectively the "SCB"), dated August 6, 2012 (available online at http://www.dfs.ny.gov/about/ea/ea120806.pdf):

1. Memorandum entitled "Business with Iran – USA Perspective" by SCB's CEO, Americas to SCB‟s Group Executive Director for Risk, its Group Head of Compliance and its Group Head of Public Affairs dated October 5, 2006, SCB INT 0005759-5762;
2. Note of Interview with SCB's Head of Cash Management Services (2002-2005), Head of Compliance (2005-2007) at the New York branch, SCB INT 0004733-4734;
3. Email from SCB's General Counsel to SCB's Group Compliance Manager dated June 1, 1995, SCB-00038523;
4. Memorandum entitled "Project Gazelle", by SCB's Group Head of Compliance and Regulatory Risk and its CEO, United Arab Emirates, to SCB's Group Executive Director for Risk and its Group Head of Global Markets dated December 1, 2005, SCB INT 0017483;
5. Email from SCB's Head of Inbound Sales, Institutional Banking, to SCB's Head of Group Market Risk, and SCB's Group Head of Institutional Banking and Global Head of Business Segment, and its Head of Funds Management dated February 19, 2001, SCB INT 0005352;
6. Email from SCB's Group Legal Advisor to its Product Manager, Corporate & Institutional Banking and its General Counsel dated March 23, 2001, SCB INT 0005368; forwarded to SCB's Group Head of Audit, its Head of Institutional Banking & Global Head of Business Segment, and its Head of Inbound Sales, Institutional Banking, SCB INT 0005367;
7. Email from SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking to SCB's outside U.S. legal counsel, SCB's New York branch Head of Legal & Compliance, Americas and Head of Legal for Corporate & Institutional Banking and SCB's Product Manager, Corporate & Institutional Banking dated October 3, 2003, SCB INT 0020023;
8. Note of Interview with SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking, SCB INT 0001338-1340;
9. Legal Memorandum from SCB's U.S. outside legal counsel entitled OFAC Regulations-Iranian Payments/Standard Chartered London/New York to SCB's Group Legal Advisor and Head of Compliance, Americas dated May 15, 2001, SCB INT 0001131;
10. Email from SCB's Manager, Cash Management Services, London to SCB's Product Manager, Corporate & Institutional Banking and its Head of Cash Management Services, UK dated October 15, 2003, SCB INT 0001471; forwarded to SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking and SCB's Head of Legal & Compliance, Americas and Head of Legal for Corporate & Institutional Banking, SCB INT 0001469;
11. Note of Interview with SCB's head of Legal and Compliance Wholesale Bank, UK/Europe, SCB INT 0003674;
12. Manual entitled, "Standard Chartered Bank, Cash Management Services, UK Quality Operating Procedure, Iranian Bank Processing", SCB INT 0005722;
13. Email from SCB's Group Head of Legal & Compliance, Wholesale Bank, forwarding the "Quality Operating Procedure" to SCB's Group Head of Compliance and Regulatory Risk, its Group Legal Advisor and its Head of Financial Crime Risk Systems and Monitoring dated October 1, 2005, SCB INT 0005715-5716;
14. Note of Interview of SCB's Manager, Cash Management Services, London, SCB INT 0001620-1621;
15. Email from SCB's U.S. outside counsel to SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking and SCB's New York branch Head of Legal & Compliance, Americas and Head of Legal for Corporate & Institutional Banking dated October 6, 2003, SCB INT 0020020;
16. Email from SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking to SCB's Head of Institutional Banking and Global Head of Business Segment and its Group Head of Compliance and Regulatory Risk and forwarding the email referenced, supra, on October 7, 2003, SCB INT 0020019.
17. Email from SCB's Legal Counsel and Head of Compliance, Wholesale Bank, UK/Europe to SCB's Head of Legal, Wholesale Bank and SCB's Group Head of Legal & Compliance dated September 4,
2003, SCB INT 0005690.
18. Email from SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking (via her assistant) to several of SCB's wholesale bank business managers dated March 9, 2003, SCB INT 0001419.
19. Memorandum entitled, Summary of the Risks/Issues to be Addressed with Regard to Iranian Bank USD Clearing that Require Management Direction from Middle East Senior Management Team,
accompanying the email, supra, and noting that additional Iranian business may “trigger an action” from OFAC, “leaving SCB exposed, with potential reputational damage,” SCB INT 0001420.
20. Note of Interview with SCB's Head of Legal & Compliance, Wholesale Bank, U.K./Europe, SCB INT 0003675.
21. Memorandum entitled "Sanctions Compliance Report" dated August 3, 2006, SCB INT 0002051.
22. SCB's "Log of Documentation Requested for BSA/AML/OFAC Pre-Exam", dated September 28, 2006, SCB INT 0004968; Note of Interview with SCB's Head of Cash Management Services (2002-2005), Head of Compliance (2005-2007) at the New York branch, SCB INT 0004725.
23. All Deloitte & Touche LLP engagement letters, interim reports, and/or final reports involving Standard Chartered, dated between January 1, 2004, and December 31, 2007.

The requested documents will be made available to the general public, and this request is not being made for commercial purposes.

In the event that there are fees, I would be grateful if you would inform me of the total charges in advance of fulfilling my request. I would prefer the request filled electronically, by e-mail attachment if available or CD-ROM if not.

Thank you in advance for your anticipated cooperation in this matter. I look forward to receiving your response to this request within 5 business days, as the statute requires.

Sincerely,

David Scantling

From:

February13, 2017 DavidScantling MuckRock DEPTMR 33139, 411A Highland Ave SomervilleMA 02144-2516 DFS FOIL No. 2017-067592: Records that were referenced in theEnforcement Action and Agreement between the New York Department of FinancialServices ("DFS") and Standard Chartered Bank Plc (including its NewYork Branch) (collectively the "SCB"), dated August 6, 2012 DearDavid Scantling, The Department of Financial Services (Banking Division) iscurrently in the process of responding to your Freedom of Information Law(“FOIL”) request. Please note the number of your requestcaptioned above. Your request has beensubmitted to the appropriate department for retrieval of the requested records. It is anticipated that the response will be completedwithin 20 business days from the date of this acknowledgment letter. If you have any questions, please contactGeorge Bogdan at 212 – 480 – 4758 or George.Bogdan@dfs.ny.gov Sincerely, Ryan Condon Administrative Assistant
Tracking Number:FOIL-2017-067592-002998

From: Condon, Ryan L (DFS)

Dear David Scantling,

I have attached the NYS Department of Financial Services' response to numerous FOIL requests of yours regarding DFS investigation files related to the enforcement actions of the department.
Please see the attached PDF for further information about your FOIL requests.

Ryan Condon
Legal Assistant

  • DFS_FOIL_No._2017-067568_to_2017-067666_David_Scantling_rmsNAz9_7aL7xJ

From:

Dear David Scantling,
I have attached the NYS Department of Financial Services' response to numerous FOIL requests of yours regarding investigation files related to the enforcement actions for various dates.
Please see the attached PDF for further information about your FOIL requests.
Ryan Condon
Legal Assistant

Tracking Number:FOIL-2017-067666-003062

  • DFS_FOIL_No._2017_067568_to_2017_067666_David_Scantling_20170223140353

From: Condon, Ryan L (DFS)

Dear David Scantling,

I have attached the NYS Department of Financial Services' response to numerous FOIL requests of yours regarding DFS investigation files related to the enforcement actions of the department.
Please see the attached PDF for further information about your FOIL requests.

Ryan Condon
Legal Assistant

  • DFS_FOIL_No._2017-067568_to_2017-067666_David_Scantling_KnwehRO_lrcCkK

From: David Scantling

Re: Freedom of Information Law (“FOIL”) Appeal for DFS FOIL Tracking Number 2017-067592

Dear Mr. Bogdan:

I hereby appeal the denial of access regarding my FOIL request, identified as DFS FOIL tracking number 2017-067592, which was made on February 10, 2017, and sent to the New York Department of Financial Services (“DFS”).

The records that were denied include:

“[T]he following records that were referenced in the Enforcement Action and Agreement between the New York Department of Financial Services ("DFS") and Standard Chartered Bank Plc (including its New York Branch) (collectively the "SCB"), dated August 6, 2012 (available online at http://www.dfs.ny.gov/about/ea/ea120806.pdf):
1. Memorandum entitled "Business with Iran – USA Perspective" by SCB's CEO, Americas to SCB‟s Group Executive Director for Risk, its Group Head of Compliance and its Group Head of Public Affairs dated October 5, 2006, SCB INT 0005759-5762;
2. Note of Interview with SCB's Head of Cash Management Services (2002-2005), Head of Compliance (2005-2007) at the New York branch, SCB INT 0004733-4734;
3. Email from SCB's General Counsel to SCB's Group Compliance Manager dated June 1, 1995, SCB-00038523;
4. Memorandum entitled "Project Gazelle", by SCB's Group Head of Compliance and Regulatory Risk and its CEO, United Arab Emirates, to SCB's Group Executive Director for Risk and its Group Head of Global Markets dated December 1, 2005, SCB INT 0017483;
5. Email from SCB's Head of Inbound Sales, Institutional Banking, to SCB's Head of Group Market Risk, and SCB's Group Head of Institutional Banking and Global Head of Business Segment, and its Head of Funds Management dated February 19, 2001, SCB INT 0005352;
6. Email from SCB's Group Legal Advisor to its Product Manager, Corporate & Institutional Banking and its General Counsel dated March 23, 2001, SCB INT 0005368; forwarded to SCB's Group Head of Audit, its Head of Institutional Banking & Global Head of Business Segment, and its Head of Inbound Sales, Institutional Banking, SCB INT 0005367;
7. Email from SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking to SCB's outside U.S. legal counsel, SCB's New York branch Head of Legal & Compliance, Americas and Head of Legal for Corporate & Institutional Banking and SCB's Product Manager, Corporate & Institutional Banking dated October 3, 2003, SCB INT 0020023;
8. Note of Interview with SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking, SCB INT 0001338-1340;
9. Legal Memorandum from SCB's U.S. outside legal counsel entitled OFAC Regulations-Iranian Payments/Standard Chartered London/New York to SCB's Group Legal Advisor and Head of Compliance, Americas dated May 15, 2001, SCB INT 0001131;
10. Email from SCB's Manager, Cash Management Services, London to SCB's Product Manager, Corporate & Institutional Banking and its Head of Cash Management Services, UK dated October 15, 2003, SCB INT 0001471; forwarded to SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking and SCB's Head of Legal & Compliance, Americas and Head of Legal for Corporate & Institutional Banking, SCB INT 0001469;
11. Note of Interview with SCB's head of Legal and Compliance Wholesale Bank, UK/Europe, SCB INT 0003674;
12. Manual entitled, "Standard Chartered Bank, Cash Management Services, UK Quality Operating Procedure, Iranian Bank Processing", SCB INT 0005722;
13. Email from SCB's Group Head of Legal & Compliance, Wholesale Bank, forwarding the "Quality Operating Procedure" to SCB's Group Head of Compliance and Regulatory Risk, its Group Legal Advisor and its Head of Financial Crime Risk Systems and Monitoring dated October 1, 2005, SCB INT 0005715-5716;
14. Note of Interview of SCB's Manager, Cash Management Services, London, SCB INT 0001620-1621;
15. Email from SCB's U.S. outside counsel to SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking and SCB's New York branch Head of Legal & Compliance, Americas and Head of Legal for Corporate & Institutional Banking dated October 6, 2003, SCB INT 0020020;
16. Email from SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking to SCB's Head of Institutional Banking and Global Head of Business Segment and its Group Head of Compliance and Regulatory Risk and forwarding the email referenced, supra, on October 7, 2003, SCB INT 0020019.
17. Email from SCB's Legal Counsel and Head of Compliance, Wholesale Bank, UK/Europe to SCB's Head of Legal, Wholesale Bank and SCB's Group Head of Legal & Compliance dated September 4,
2003, SCB INT 0005690.
18. Email from SCB's Head of Transactional Banking Solutions, UK/Europe Corporate & Institutional Banking (via her assistant) to several of SCB's wholesale bank business managers dated March 9, 2003, SCB INT 0001419.
19. Memorandum entitled, Summary of the Risks/Issues to be Addressed with Regard to Iranian Bank USD Clearing that Require Management Direction from Middle East Senior Management Team,
accompanying the email, supra, and noting that additional Iranian business may “trigger an action” from OFAC, “leaving SCB exposed, with potential reputational damage,” SCB INT 0001420.
20. Note of Interview with SCB's Head of Legal & Compliance, Wholesale Bank, U.K./Europe, SCB INT 0003675.
21. Memorandum entitled "Sanctions Compliance Report" dated August 3, 2006, SCB INT 0002051.
22. SCB's "Log of Documentation Requested for BSA/AML/OFAC Pre-Exam", dated September 28, 2006, SCB INT 0004968; Note of Interview with SCB's Head of Cash Management Services (2002-2005), Head of Compliance (2005-2007) at the New York branch, SCB INT 0004725.
23. All Deloitte & Touche LLP engagement letters, interim reports, and/or final reports involving Standard Chartered, dated between January 1, 2004, and December 31, 2007.”

You noted in your denial letter, dated February 23, 2017, that:

“New York’s Banking Law § 36.10 provides that reports of examinations and investigations and correspondence and memoranda concerning or arising out of such examinations and investigations are confidential and shall not be made public.”

However, § 36.10 also provides DFS with the following flexibility:

“[U]nless, in the judgment of the superintendent, the ends of justice and the public advantage will be subserved by the publication thereof, in which event the superintendent may publish or authorize the publication of a copy of any such report or any part thereof in such manner as may be deemed proper…”.

Based on this, I disagree with the denial and request a reconsideration based on the following reasons:

1. Over four (4) years ago, DFS made excerpts from the requested records available to the public.
2. The requested records delivered by SCB and/or Deloitte to DFS were dated between nine (9) to twenty (20) years ago. Because of their age, the public interest outweighs the confidential nature of these documents and they should be released. For example, the U.S. Department of Defense routinely declassifies "Secret" documents after ten (10) years and releases them to the public.
3. However, if DFS determines that portions of the requested records still contain confidential information, I request that DFS redact those portions and release the remainder of the requested records to the public. For example, agencies within the U.S. Intelligence Community routinely redact highly classified documents and release them to the public (including documents classified "Top Secret/TS" and/or "Sensitive Compartmented Information/SCI").
4. Alternatively, if for some reason DFS determines that it is unable to release the requested records (in either full or redacted versions), I request that DFS release a listing of the denied records (including each document’s respective title, date, author, DFS tracking number, and how its disclosure would damage DFS’s interests).

As required by the Freedom of Information Law, the head or governing body of an agency, or whomever is designated to determine appeals, is required to respond within ten (10) business days of the receipt of an appeal. If the records are denied on appeal, please explain the reasons for the denial fully in writing as required by law.

In addition, please be advised that the Freedom of Information Law directs that all appeals and the determinations that follow be sent to the Committee on Open Government, Department of State, One Commerce Plaza, 99 Washington Ave., Suite 650, Albany, New York 12231.

Regards,

David Scantling

From: Condon, Ryan L (DFS)

March 8, 2017

David Scantling
MuckRock
DEPT MR 33139, 411A Highland Ave
Somerville MA 02144-2516

Re: Appeal of New York Freedom of Information Law (“FOIL”): Appeals of Eleven (11) requests in the table below requesting investigation files related to the enforcement actions listed below for various dates

Mr. Scantling,

The Department of Financial Services (Banking Division) has received the 11 appeals listed in the table below regarding your Freedom of Information Law (“FOIL”) requests.

Date Received

FOIL Tracking #

Topic

2/16/2017

2017-067659
Appealed

Standard Chartered 2012 Enforcement Action

2/10/2017

2017-067592
Appealed

Standard Chartered: 2012 Enforcement Action

2/10/2017

2017-067581
Appealed

Barclays: 2010 Enforcement Action

2/10/2017

2017-067580
Appealed

Dresdner Bank: 2008 Enforcement Action

2/10/2017

2017-067579
Appealed

Sumitomo Mitsui: 2007 Enforcement Action

2/10/2017

2017-067578
Appealed

Mitsubishi UFJ Financial Group: 2006 Enforcement Action

2/10/2017

2017-067577 Appealed

Deutsche Bank 2005 Enforcement Action

2/10/2017

2017-067575 Appealed

Standard Chartered Bank 2004 Enforcement Action

2/8/2017

2017-067569
Appealed

ABN AMRO Bank NV 2004 Enforcement Action

2/8/2017

2017-067568
Appealed

HSBC Bank USA 2003 Enforcement Action

2/8/2017

2017-067530
Appealed

Promontory Financial Group action involving SCB 2010 – 2011

Sincerely,
Ryan Condon
Administrative Assistant

  • Various_Scantling_Appeals_DFS_FOIL_No._2017-067569_-_067581_5C5FGIv_Vn

From: Condon, Ryan L (DFS)

March 8, 2017

David Scantling
MuckRock
DEPT MR 33139, 411A Highland Ave
Somerville MA 02144-2516

Re: Appeal of New York Freedom of Information Law (“FOIL”): Appeals of Eleven (11) requests in the table below requesting investigation files related to the enforcement actions listed below for various dates

Mr. Scantling,

The Department of Financial Services (Banking Division) has received the 11 appeals listed in the table below regarding your Freedom of Information Law (“FOIL”) requests.

Date Received

FOIL Tracking #

Topic

2/16/2017

2017-067659
Appealed

Standard Chartered 2012 Enforcement Action

2/10/2017

2017-067592
Appealed

Standard Chartered: 2012 Enforcement Action

2/10/2017

2017-067581
Appealed

Barclays: 2010 Enforcement Action

2/10/2017

2017-067580
Appealed

Dresdner Bank: 2008 Enforcement Action

2/10/2017

2017-067579
Appealed

Sumitomo Mitsui: 2007 Enforcement Action

2/10/2017

2017-067578
Appealed

Mitsubishi UFJ Financial Group: 2006 Enforcement Action

2/10/2017

2017-067577 Appealed

Deutsche Bank 2005 Enforcement Action

2/10/2017

2017-067575 Appealed

Standard Chartered Bank 2004 Enforcement Action

2/8/2017

2017-067569
Appealed

ABN AMRO Bank NV 2004 Enforcement Action

2/8/2017

2017-067568
Appealed

HSBC Bank USA 2003 Enforcement Action

2/8/2017

2017-067530
Appealed

Promontory Financial Group action involving SCB 2010 – 2011

Sincerely,
Ryan Condon
Administrative Assistant

  • Various_Scantling_Appeals_DFS_FOIL_No._2017-067569_-_067581_MvZITWH_me

From:

Mr. Scantling,
I have attached the NYS Department of Financial Services' response to your appeals of Eleven FOIL requests regarding investigation files related to certain enforcement actions.
Please see the attached PDF for further information regarding your Appeals.
Ryan Condon
Legal Assistant

Tracking Number:FOIL-2017-067659-003370

  • David_Scantling_various_FOIL_appeals_responses_201704061113034471

From: Condon, Ryan L (DFS)

Mr. David Scantling,

I have attached the NYS Department of Financial Services' response to your Eleven Appeals regarding FOIL requests for investigation files related to certain enforcement actions.
Please see the attached PDF for further information about your appeals.

Ryan Condon
Legal Assistant

Files

pages

Close
  • DFS_FOIL_No._2017_067592_201702131040114531

  • DFS_FOIL_No._2017-067568_to_2017-067666_David_Scantling_rmsNAz9_7aL7xJ

  • DFS_FOIL_No._2017_067568_to_2017_067666_David_Scantling_20170223140353

  • DFS_FOIL_No._2017-067568_to_2017-067666_David_Scantling_KnwehRO_lrcCkK

  • Various_Scantling_Appeals_DFS_FOIL_No._2017-067569_-_067581_5C5FGIv_Vn

  • Various_Scantling_Appeals_DFS_FOIL_No._2017-067569_-_067581_MvZITWH_me

  • David_Scantling_various_FOIL_appeals_responses_201704061113034471

  • David_Scantling_various_FOIL_appeals_responses