WASHINGTON, Dec 10 (Reuters) - Standard Chartered Plc agreed to pay $327 million to resolve allegations that

it violated U.S. sanctions and other laws, essentially doubling

its fine for the conduct and capping months of U.S. legal

headache for the British bank.

The U.S. Justice Department and the New York District

Attorney's office on Monday accused the bank of moving millions

of dollars through the U.S. financial system on behalf of

customers in Iran, Sudan, Libya and Burma, in violation of

sanctions laws.

The agencies both agreed to defer and drop the charges if

the bank improves its sanctions compliance and forfeits $227

million.

Separately, the bank also entered into a $100 million

agreement with the U.S. Federal Reserve to resolve allegations

that the bank provided 'inadequate and incomplete responses' to

bank examiners and provided insufficient oversight of its

sanctions compliance program.

'The United States expects a minimum standard of behavior

from all financial institutions that enjoy the benefits of the

U.S. financial system. Standard Chartered's conduct was

flagrant and unacceptable,' Justice Department criminal chief

Lanny Breuer said in a statement.

'These cases give teeth to sanctions enforcement, send a

strong message about the need for transparency in international

banking, and ultimately contribute to the fight against money

laundering and terror financing,' New York District Attorney

Cyrus Vance said.

The U.S. Treasury Department also entered into a settlement

to resolve allegations that the bank's London and Dubai offices

violated US sanctions against the four countries at issue.

Treasury said it levied a $132 million penalty but deemed

that satisfied by the bank's payment to DOJ.

The federal-state settlements come several months after the

bank agreed to pay $340 million to resolve a related case

brought by the New York banking regulator.

In August, the New York Department of Financial Services

broke from its fellow regulators and filed a surprise order

accusing the bank of hiding some $250 billion worth of

transactions with Iran.

The action on Monday alleges that the bank moved 'more than

$200 million' through the US financial system, primarily on

behalf of Iranian and Sudanese clients.

(Reporting By Aruna Viswanatha in Washington and Karen Freifeld

in New York; Editing by Gerald E. McCormick, Theodore d'Afflisio

and Sofina Mirza-Reid)

Keywords: STANCHART/SETTLEMENT

(Aruna.Viswanatha@thomsonreuters.com)(202)(354-5815)(Reuters Messaging: aruna.viswanatha.thomsonreuters.com@reuters.net)

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