Deloitte receives one-year ban on New York consulting work

by Rachael Singh

More from this author

19 Jun 2013

  • Comments
New York

DELOITTE FINANCIAL ADVISORY SERVICES has been banned from providing any consulting work for financial businesses in New York.

The New York financial regulator has criticised Deloitte FAS for its work at Standard Chartered bank over money-laundering processes, the BBC reports.

The firm will also have to pay the state of New York $10m (£6.4m) under an agreement struck between the firm and the regulator.

Following an investigation into Deloitte FAS by the Department of Financial Services (DFS) it was revealed the firm had failed to demonstrate the requirements expected of consultants performing regulated work at the bank.

It was also noted that Deloitte FAS had violated the New York banking law by disclosing confidential information to Standard Chartered regarding other clients.

As well as the voluntary suspension and fine, the firm has implemented a set of reforms to help it address the issues raised by the DFS.

In a statement, Deloitte said: "Deloitte FAS has voluntarily entered into an agreement with the New York Department of Financial Services that resolves DFS' inquiry into Deloitte FAS' role in the 2004-2005 Standard Chartered Bank (SCB) matter.

"Deloitte FAS looks forward to working constructively with DFS to establish best practices and procedures that are ultimately intended to become the industry standard for all independent consulting engagements under DFS' supervision."

The statement added that the agreement related only to Deloitte FAS, and did not affect any other Deloitte entity. Also, this agreement is to ban the Deloitte FAS from undertaking any new engagements and not any exisiting ones.

In 2012 Standard Chartered agreed to pay $340m to DFS, $227m to the Department of Treasury and a fine imposed by the Federal Reserve of $100m over charges it violated US sanctions on Iran, Burma, Libya and Sudan.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send
HM Revenue & Customs

Head Of Financial Control

HM Revenue & Customs, Telford, Full Time, Permanent/p>

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.