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Standard Chartered is accused of illegally processing dollar transactions on behalf of an Iranian petrochemical company.

Standard Chartered  (SCBFF) , the U.K. lender, agreed to pay $1.1 billion to resolve probes into its compliance with sanctions and financial-crime controls, including concealing illegal financial transactions clients engaged in with Iran. 

The bank already had set aside $900 million to cover the costs in the fourth quarter of 2018, and it will record another charge of $190 million in results for the first quarter of this year, according to a press release on Tuesday.

Under the terms of the agreements, London-based Standard Chartered will pay $947 million to U.S. and New York state regulators and 102 million pounds ($133 million) to U.K. authorities.

"We are pleased to have resolved these matters and to put these historical issues behind us," CEO Bill Winters said in the press release. The allegations relate to activities that occurred prior to 2014, according to the bank.

The U.S. is Standard Chartered's second-biggest foreign market after China, with about $24.4 billion of loans and other cross-border exposures, according to a recent annual report

The settlements include the case of two former junior employees who conspired with certain customers with connections to Iran, according to the release. 

The New York State Department of Financial Services said in its own statement that the probe was part of ongoing efforts to prevent money-laundering and terrorist financing.

The allegations covered $600 million of dollar-clearing transactions between 2008 and 2014 that originated at the bank's London and Dubai offices and were transmitted to its New York branch, in violation of state and federal laws, according to the statement.  

The bank "processed more than $150 million in incoming and outgoing dollar transactions for an Iranian petrochemical company, which was masked as being operated in Dubai," according to the statement. "In another case, a bank manager in Dubai improperly took money from a sanctioned Iranian corporate entity to buy a personal car." 

There were "significant gaps in the bank's payment-system controls, incomplete customer due diligence, inadequate sanctions compliance leadership and little oversight of employees in Dubai," the state said.