Two years ago, the
The revelations about additional penalties and the possible extension of a two-year deferred prosecution agreement with the US authority - which has installed a monitor in the bank - could put fresh pressure on the chief executive,
Difficult conditions in its Korean business and its financial markets operations were behind the 20% fall in profits to
Referring to the latest regulatory setback, Sands said: "This is a very different set of issues than we faced in 2012." Then, the bank was caught by surprise by NYSDFS accusations about breaches of sanctions to
In legal warnings attached to its first-half results, the bank said: "Certain issues have been identified with respect to the group's post-transaction surveillance system, which is part of its anti-money-laundering systems and controls and is separate from the group's sanctions screening systems."
It added: "The group believes that the resolution of these issues is likely to involve an enforcement action by the NYSDFS that would include an extension of the term of the monitor beyond the original two-year term, a monetary penalty and remedial actions."
Last month, the
Defending his role, he said: "It is worth noting that, despite the disappointing first half of 2014, we delivered more profit for our shareholders during these six months than we did in the whole of 2006 at the peak of the pre-crisis banking boom. Not many banks can make that claim."
Presenting the figures to City analysts, Sands sat alongside Sir
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