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.
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