Standard Chartered said the proposed fine comes after New York financial regulators identified new problems with the bank’s surveillance system.
The problems might also lead to remedial action and an extension of a two-year monitoring period, which was imposed in 2012 after the bank was fined $667m by US regulators for allegedly hiding multi-billion dollar transactions with Iran, reported Reuters.
Speaking to reporters, Standard Chartered chief executive Peter Sands said the latest problems were related to computer surveillance faults and were less serious than those spotted earlier.
"We do not believe the impact to be of the same scale as the very different issues the group faced two years ago," Sands added, noting that the penalty should be less than the $340m paid by the bank in 2012.
The revelation comes as the London-based bank reported a 20% earnings decline in half-year profits.
The bank’s pretax profit, excluding adjustments to the value of its own debt, fell to $3.3bn from $4.1bn in the year-earlier period.
Commenting on results, Sands said: "Our performance this first half is clearly disappointing.
"We’re taking action on multiple fronts, both in response to near term pressures and to execute our refreshed strategy, with the objective of getting back to a trajectory of sustainable, profitable growth."
