• Elise Stefanik urges AG Pam Bondi to probe Standard Chartered
• Claims bank funneled $9.6 billion to terrorist-linked groups
• Says China used bank to purchase sanctioned Iranian oil
• Accuses NY AG Letitia James of ignoring whistleblower warnings
• Whistleblowers claim payments routed via New Jersey servers
• Bank denies all allegations and cites repeated court dismissals
• DOJ declined to intervene in 2012, 2017, 2019 and 2024
• Stefanik warns case expiration could endanger national security
• Bank pledges to cooperate with authorities if reviewed again
• StanChart previously fined $1.1 billion in 2019 over sanctions lapses

Rep. Elise Stefanik, R-NY, has called on U.S. Attorney General Pam Bondi to open a federal investigation into Standard Chartered Bank, alleging the British lender funneled billions in illicit payments that could have supported terrorist groups.

In a letter sent Thursday, Stefanik requested the appointment of a special attorney to probe the matter, warning that a sanctions case tied to the bank was set to expire Tuesday without further action. 

“Without further action on this case, there is a grave risk of additional funds being funneled to terrorist organizations that endanger the United States and the American people,” she wrote.

Stefanik claimed that Standard Chartered made at least $9.6 billion in payments to terrorists and that China used the bank to purchase sanctioned Iranian oil. 

She further alleged that these transactions were hidden from required disclosure under a deferred prosecution agreement supervised by the Southern District of New York and the U.S. Attorney for Washington, D.C.

The congresswoman also directed sharp criticism at New York Attorney General Letitia James, accusing her of ignoring warnings from whistleblowers and experts. 

According to Stefanik, James and her deputies were briefed about the payments, but “not only did they do nothing about this, but she then approved the bank’s annual license.”

James’ “failure to act”, Stefanik wrote, raised questions about whether she coordinated with the Biden administration to ignore evidence of illicit activity. 

She said whistleblower reports indicated Standard Chartered had used servers in Newark, New Jersey, to execute some of the disputed transactions.

“Due to the immediate national security risks presented by Standard Chartered Bank’s activity and NYAG James’ failure to act I ask that you appoint the Acting U.S. Attorney for the District of New Jersey as Special Attorney to the Attorney General in charge of all matters involving Standard Chartered Bank,” Stefanik urged Bondi.

Standard Chartered strongly rejected the accusations, noting that U.S. courts have repeatedly dismissed similar claims. 

“These allegations are entirely false and have been rejected by U.S. courts multiple times,” the bank said in a Friday statement. 

“We expect the dismissal of this case will continue to be upheld on appeal.” The bank added that it would “fully cooperate with any relevant authorities to reassure them that these allegations are meritless.”

The Justice Department has consistently declined to intervene in the lawsuit, which dates back to 2012. Jefferies analyst Joseph Dickerson reminded clients that DOJ moves to dismiss came in 2012, 2017, and 2019, while a petition to the Supreme Court was denied in 2024.

Despite those repeated dismissals, Standard Chartered has faced regulatory penalties in the past. In 2019, U.S. and U.K. authorities ordered the bank to pay $1.1 billion over failures in anti-money laundering controls and breaches of sanctions against countries including Iran.

The latest clash underscores the tension between political leaders and the financial sector, as Stefanik pushes for renewed scrutiny of one of London’s largest banks despite its insistence that the allegations are baseless.