Deloitte LLP’s financial advisory unit will pay $10 million and refrain for one year from new business with certain New York banks to settle accusations over its review of money laundering controls at Standard Chartered Bank.
Deloitte Financial Advisory Services also agreed to reforms designed to address potential conflicts of interest, the state Department of Financial Services said on Tuesday.
The head of the state regulator said the case was just the start of a crackdown “investigating and reforming the consulting industry.”
The ban on new business and the reforms apply only to Deloitte’s financial services advisory group, which is separate from its auditing arm.
In August, Standard Chartered agreed to pay New York $340 million for breaking U.S. sanctions against Iran and other countries. Last December, it agreed to another $327 million to resolve similar allegations by other U.S. agencies.
Deloitte, which was working as a consultant to Standard Chartered, omitted critical information in a report to regulators on its independent review of the bank
, the Department of Financial Services said. The department oversees New York banks and New York branches of foreign banks.
Detailed news link (source: Reuters): click here
DFS NY press release link: Cuomo Administration Reaches Reform Agreement With Deloitte Over Standard Chartered Consulting Flaws