Banks from within the USA are banned from trading with the country because of tensions that exist between the States and Iran. The New York State Department of Financial Services claim that the bank hid around 60,000 transactions across ten years, a total of $250bn.

Standard Chartered are accused of falsifying entries by removing all signs that the clients were from Iran, while the complaint also claims that the company’s senior management codified their illegal procedures in formal operating manuals

The UK-based bank strongly denied the allegations issued by the allegation saying, "As we have disclosed to the authorities, well over 99.9% of the transactions relating to Iran complied with U-turn regulations.

"The total value of transactions which did not follow the U-turn was under $14m."

Standard Chartered also say that they have extensively reviewed transactions between 2001 and 2007, giving the US authorities regular updates on the finding.

However, this has not stopped the bank being threatened with having its banking licence in the States removed, and the company’s shares plummeted this morning: down 16% when Hong Kong opened, and a further 15% in London.

The US Treasury said it was treating the potential violation “extremely seriously”.