https://en.sputniknews.africa/20250113/zambias-sec-sanctions-standard-chartered-over-mis-selling-of-chinese-bonds-1070158936.html
Zambia’s SEC Sanctions Standard Chartered Over Mis-Selling of Chinese Bonds
Zambia’s SEC Sanctions Standard Chartered Over Mis-Selling of Chinese Bonds
Sputnik Africa
According to the International Consortium of Investigative Journalists, Standard Chartered is one of the world's leading facilitators of money laundering, with... 13.01.2025, Sputnik Africa
2025-01-13T14:56+0100
2025-01-13T14:56+0100
2025-01-13T15:09+0100
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Zambia’s Securities and Exchange Commission (SEC) has taken enforcement action against Standard Chartered Bank for mis-selling bonds linked to Chinese developer Sino-Ocean to a local wealth client during the height of China’s real estate crisis, a source told a Western media outlet.The UK-based multinational bank, which is in the process of selling its Zambian wealth and retail banking operations, was found to have violated two SEC regulations following an investigation initiated in April.Key findings from the SEC include:Standard Chartered recognized the decision made by the SEC and expressed its plan to file an appeal. A spokesperson reportedly emphasized the bank's dedication to adhering to regulations and mentioned that, while they respect the SEC's decision in Zambia, they intend to utilize the local procedures available to them by appealing.The SEC has the authority to impose fines and issue public or private reprimands, though it cannot mandate customer compensation. Standard Chartered has 30 days to lodge its appeal under Zambia’s Securities Act.This controversy emerges as the bank continues to scale back its operations in Africa, having sold businesses in Tanzania, Angola, Cameroon, and other nations. It has operated in Zambia for nearly 120 years but announced in November its intention to exit wealth and retail banking in Zambia, Botswana, and Uganda.
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Zambia’s SEC Sanctions Standard Chartered Over Mis-Selling of Chinese Bonds
14:56 13.01.2025 (Updated: 15:09 13.01.2025) Christina Glazkova
Writer / Editor
According to the International Consortium of Investigative Journalists, Standard Chartered is one of the world's leading facilitators of money laundering, with a significant portion of the $2.4 trillion in shady transactions carried out through banks annually passing through it.
Zambia’s Securities and Exchange Commission (SEC) has taken enforcement action against Standard Chartered Bank for mis-selling bonds linked to Chinese developer Sino-Ocean to a local wealth client during the height of China’s real estate crisis, a source told a Western media outlet.
The UK-based multinational bank, which is in the process of selling its
Zambian wealth and retail banking operations, was found to have violated two SEC regulations following an investigation initiated in April.
Key findings from the SEC include:
1.
Non-disclosure of material information: The bank reportedly sold the
bonds in March 2022 without adequately disclosing critical details about their risk. Sino-Ocean defaulted on the bonds in just over a year, rendering them nearly worthless;
2.
Exclusionary contract clauses: Standard Chartered used clauses that placed all responsibility for the risks on the client, breaching Zambia’s securities rules, the report read.
Standard Chartered recognized the decision made by the SEC and expressed its plan to file an appeal. A spokesperson reportedly emphasized the bank's dedication to adhering to regulations and mentioned that, while they respect the SEC's decision in Zambia, they intend to utilize the local procedures available to them by appealing.
The SEC has the authority to impose fines and issue public or private reprimands, though it cannot mandate customer compensation. Standard Chartered has 30 days to lodge its
appeal under Zambia’s Securities Act.
This controversy emerges as the bank continues to scale back its operations in Africa, having sold businesses in Tanzania,
Angola, Cameroon, and other nations. It has operated in Zambia for nearly 120 years but announced in November its intention to exit wealth and retail banking in Zambia, Botswana, and Uganda.
