China Rail­way Corp forms cargo ven­ture with SF Hold­ing

The Star Malaysia - StarBiz - - Foreign News -

Char­tered ad­mit­ted that it hid or dis­guised the iden­tity of Ira­nian clients – in­clud­ing the cen­tral bank of Iran – in bil­lions of dol­lars of trans­ac­tions through the US from 2001 to 2007.

As part of the de­ferred-pros­e­cu­tion agree­ment, the bank agreed to have an out­side mon­i­tor scru­ti­nise its busi­ness prac­tices and the US agreed to even­tu­ally dis­miss charges af­ter the bank com­plied with a deal.

Those terms were set to ex­pire in 2014. But au­thor­i­ties ex­tended the deal – and opened an­other in­ves­ti­ga­tion – af­ter sus­pi­cions arose that Stan­dard Char­tered con­tin­ued to con­duct Ira­nian busi­ness for clients af­ter 2007. The busi­ness al­legedly in­volved fa­cil­i­tat­ing pay­ments for firms based in the United Arab Emi­rates that were trad­ing with Ira­nian coun­ter­parts, ac­cord­ing to peo­ple fa­mil­iar with the probe.

That year, it paid an­other US$300mil to the New York state bank­ing reg­u­la­tor af­ter the mon­i­tor un­cov­ered a flaw in Stan­dard Char­tered’s sys­tem for track­ing sus­pi­cious trans­ac­tions, which the bank was re­quired to do un­der the orig­i­nal agree­ment.

The agree­ment has since been ex­tended twice more, in­clud­ing as re­cently as last month, and will now run un­til the end of 2018. — Bloomberg BEI­JING: China Rail­way Corp formed a cargo ven­ture with ex­press de­liv­ery com­pany SF Hold­ing Co as part of the na­tion’s ef­forts to draw in pri­vate en­ter­prises to bol­ster state firms’ com­pet­i­tive­ness.

Cargo sub­sidiary China Rail­way Ex­press Co will hold a 55% stake, while SF, the coun­try’s big­gest par­cel-de­liv­ery com­pany, will own the rest of the ven­ture, the na­tional rail­way op­er­a­tor said in a state­ment. SF and China Rail­way won’t own shares in each other.

The pact with SF is part of China’s ef­forts to let rail­ways ac­count for a larger share of cargo trans­porta­tion to com­bat road-traf­fic pol­lu­tion, and would help the rail op­er­a­tor meet a goal of in­creas­ing cargo ship­ments by 30% by 2020.

It is China Rail­way’s sec­ond tie-up with a pri­vate firm fol­low­ing the sale of a stake in a unit of­fer­ing wi-fi on bul­let trains to Ten­cent Hold­ings Ltd and Geely Au­to­mo­bile Hold­ings Ltd in June.

SF and China Rail­way’s ven­ture, based in the south­ern city of Shen­zhen, will of­fer cargo ship­ments by bul­let and ex­press trains. — Bloomberg

Big­ger fine: A file pic­ture show­ing peo­ple walk­ing in­side the main branch of Stan­dard Char­tered in Hong Kong. Au­thor­i­ties may im­pose an even big­ger fine than the US$667mil the bank paid in 2012. — Reuters

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