Deloitte Faces $10 Million Fine, One-Year Ban

What's Next In Payments®
5:38 PM EDT June 18th, 2013

Deloitte has agreed to a $10 million fine and one-year ban from advising banks chartered in New York in a settlement with state officials, according to Dealbook

Tuesday’s settlement stems from a case of alleged misconduct during Deloitte’s work for Standard Chartered bank in 2004 and 2005. Deloitte is accused of “watering down” reports of Standard Charter’s alleged transferring of billions of dollars to Iran.

The announcement follows a $340 million settlement New York reached with Standard Chartered in August. The Times noted that Tuesday’s development was noteworthy, as Deloitte has not been previously accused of improper actions.

Deloitte stated in 2012 that the charges were “unsupported by the facts,” and denied operating as anything other than an independent consultant in its work with Standard Chartered. Implications of the consultant’s potential misconduct surfaced in late 2011, Reuters reported

New York Governor Andrew Cuomo’s administration finalized the settlement between his state and Deloitte on Tuesday in what is seen as a major victory for the state’s top regulator, Benjamin Lawsky.

The state blamed Deloitte of failing to show “autonomy and objectivity,” and stopped short of accusing it of illegally laundering money to the foreign nation.

Benjamin Lawsky, New York’s top banking regulator, believes the accusations to be consistent with the environment that has infected the consulting industry. Lawsky stressed that the settlement was an important step in ensuring that “consultants are independent voices” who are not “beholden to large financial institutions,” Dealbook reported.

Deloitte issued a statement in which it voluntarily accepted the settlement, and took responsibility. It further committed itself to continually elevating the standards of its work in the statement.

As noted in Dealbook, this is just the first step in what is likely to be a larger crackdown on New York-based consulting firms.

Read the full report from The New York Times produced Dealbook here.

Comments
Also by This Author
What's Hot
News
Not A News Flash: Payment Fraud Will Explode During EMV Rollouts
News
The Twelve Month Countdown: Mobile and EMV? Mobile or EMV?
B2B Payments
Tungsten Brings Its E-Invoice Platform To Qatar
B2B Payments
Rules Governing Military Travel Management Changing
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
News
Not A News Flash: Payment Fraud Will Explode During EMV Rollouts
Apple Pay Tracker
Apple Adds Buy-It Buttons to iAd
Apple Pay Tracker
The Apple Pay Beacon Trojan Horse
News
The Twelve Month Countdown: Mobile and EMV? Mobile or EMV?
View All Articles ››