On September 26, 2025, a U.S. federal judge in New York dismissed two high-profile lawsuits against Standard Chartered Bank, a central British multinational bank, that accused it of indirectly facilitating terror financing.

• The cases, filed by victims and families affected by attacks in Israel and Iraq, alleged the bank provided financial services that aided groups like Hamas, Hezbollah, and others.
• This ruling marks a significant legal victory for the bank, which has faced repeated scrutiny over sanctions violations and money laundering in recent years.

Dismissal of Terror-Financing Lawsuits Against Standard Chartered Bank

Case Overview

1. On September 26, 2025, U.S. District Judge Margaret Garnett of the Southern District of New York dismissed two high-profile lawsuits against Standard Chartered Bank.
2. The lawsuits, Fraenkel et al v. Standard Chartered Bank (Case No. 24-04484) and Brauner et al v. Standard Chartered Bank (Case No. 24-05788), were filed under the Justice Against Sponsors of Terrorism Act (JASTA).
3. The plaintiffs, comprising 90 victims and families affected by terror attacks in Israel and Iraq, alleged that Standard Chartered facilitated over $438 million in transactions for sanctioned Iranian entities between 2009 and 2014, indirectly funding 12 attacks from 2010 to 2019.

Legal Context

1. JASTA, enacted in 2016, allows victims of terrorism to sue entities that 'aid and abet' such acts.
2. However, courts have increasingly required plaintiffs to demonstrate a direct and concrete causal link between the defendant’s actions and specific terrorist incidents. In this case, Judge Garnett ruled that the plaintiffs failed to establish a 'clear causal connection' between Standard Chartered’s financial services and the attacks.

Court Decision

1. The court found that the allegations lacked sufficient evidence to prove that Standard Chartered’s actions directly supported terrorism.
2. The bank denied any involvement, stating it 'did not commit any acts of terrorism and did not support any terrorist or attack.'
3. The dismissal represents a significant legal victory for Standard Chartered and sets a precedent for similar cases involving financial institutions.

Broader Implications

1. This ruling signals judicial caution in expanding liability for banks in secondary roles in sanctions evasion. It reinforces the importance of direct evidence under JASTA and may influence future litigation strategies. Despite this legal win, Standard Chartered continues to face reputational challenges and scrutiny over past violations and ongoing investigations.

Historical and Ongoing Allegations

1. Standard Chartered has previously faced multiple allegations and penalties:
   - 2024: Whistleblowers accused the bank of handling $100 billion in terror-linked transactions.
   - 2025: U.S. Rep. Elise Stefanik called for investigations into $9.6 billion in illicit payments.
   - 2019: $1.1 billion fine for sanctions breaches.
   - 2012: $667 million settlement.
   The bank is also involved in ongoing cases, including a $2.7 billion 1MDB fraud lawsuit in Singapore filed in July 2025.

Summary of the Standard Chartered Terror-Financing Lawsuit Dismissal

1. The Ruling

• Date: September 26, 2025
• Court: U.S. District Court, Southern District of New York
• Judge: Margaret Garnett
• Outcome: Dismissal of two lawsuits against Standard Chartered Bank
• Reason: Plaintiffs failed to show a clear causal connection between the bank’s financial services and specific terrorist attacks.

2. The Lawsuits

• Cases:
• Fraenkel et al v. Standard Chartered Bank (24-04484)
• Brauner et al v. Standard Chartered Bank (24-05788)
• Filed Under: Justice Against Sponsors of Terrorism Act (JASTA)
• Plaintiffs: 90 individuals (victims and families of attacks in Israel and Iraq)
• Allegations:
• Bank processed $438M in transactions for Iranian entities (2009–2014)
• Indirectly funded 12 terror attacks (2010–2019) by Hamas, Hezbollah, etc.

3. Legal Implications

• JASTA Requirements: Courts now demand direct evidence of support, not just indirect facilitation.
• Impact: Sets a precedent limiting liability for banks in secondary roles in sanctions evasion.

4. Broader Context

• Past Allegations:
• 2024: Whistleblower claims of $100B in terror-linked transactions
• 2025: Rep. Elise Stefanik’s call for an investigation into $9.6B in illicit payments
• DOJ dismissed related whistleblower claims in August 2025
• Historical Penalties:
• $1.1B fine in 2019 (Iran sanctions)
• $667M settlement in 2012
• Ongoing Cases:
• Afghanistan-related financing lawsuits
• $2.7B 1MDB fraud case in Singapore (July 2025)

Analysis & Implications

• For Banks: Reinforces the importance of robust compliance but offers legal protection against overly broad terror-financing claims.
• For Plaintiffs: Highlights the difficulty in proving indirect financial links under JASTA.
• For Regulators: May prompt calls to tighten laws or redefine thresholds for liability.
• For Standard Chartered: A legal win, but reputational risks persist due to ongoing scrutiny and historical violations.

Overview of the Story

• On September 26, 2025, a U.S. federal judge in New York dismissed two high-profile lawsuits against Standard Chartered Bank, a central British multinational bank, that accused it of indirectly facilitating terror financing.
• The cases, filed by victims and families affected by attacks in Israel and Iraq, alleged the bank provided financial services that aided groups like Hamas, Hezbollah, and others.
• This ruling marks a significant legal victory for the bank, which has faced repeated scrutiny over sanctions violations and money laundering in recent years.

Background on the Lawsuits

• The dismissed suitsFraenkel et al v. Standard Chartered Bank (Case No. 24-04484) and Brauner et al v. Standard Chartered Bank (Case No. 24-05788), were brought under the Justice Against Sponsors of Terrorism Act (JASTA), a 2016 U.S. law allowing terror victims to sue entities that "aid and abet" such acts. The 90 plaintiffs, including survivors and relatives of those killed or injured, claimed Standard Chartered's actions between 2009 and 2014 enabled sanctioned Iranian entities (like Iran's central bank) to access the U.S. financial system, indirectly funding 12 attacks from 2010 to 2019. These attacks, carried out by groups such as Hamas, Hezbollah, Jaysh al-Mahdi, and Palestinian Islamic Jihad, resulted in numerous casualties.
• Plaintiffs pointed to the bank's Dubai and New York branches processing over $438 million in transactions linked to Iran, despite U.S. warnings. Standard Chartered denied any direct involvement in terrorism, stating in court filings that it "did not commit any acts of terrorism and did not support any terrorist or attack."

The Court's Decision

• U.S. District Judge Margaret Garnett of the Southern District of New York ruled that the plaintiffs failed to establish a "clear causal connection" between the bank's alleged financial facilitation and the specific terror acts. Courts have increasingly required concrete evidence of direct support under JASTA, rather than broad indirect links. The dismissal is a win for global banks facing similar claims, signalling judicial caution in expanding liability for secondary financial roles in sanctions evasion.
• Neither the plaintiffs' lawyers nor Standard Chartered commented immediately after the ruling.

Broader Context and Standard Chartered's History

• This isn't the first time Standard Chartered has battled terror-financing allegations:
• In 2024, whistleblowers accused the bank of handling $100 billion in transactions for terror-linked entities, including falsifying data to bypass U.S. sanctions on Iran. The bank denied these, calling them "thoroughly discredited."
• Earlier in 2025, U.S. Rep. Elise Stefanik urged investigations into $9.6 billion in alleged illicit payments, causing the bank's shares to drop 7.8%. The U.S. Department of Justice later dismissed related whistleblower claims in August 2025.
• The bank has a track record of fines, including $1.1 billion in 2019 for sanctions breaches involving Iran and other countries, and a $667 million settlement in 2012.
• Despite these challenges, the September 2025 dismissal reinforces Standard Chartered's defences in ongoing cases, such as those from U.S. military families over Afghanistan-related financing. The bank continues to emphasise its compliance investments, although it remains a target in global anti-money laundering probes, including a $2.7 billion 1MDB fraud lawsuit filed in Singapore in July 2025.
• This story highlights ongoing tensions between financial institutions, U.S. sanctions enforcement, and victims' rights in the fight against terror funding.

Here are reliable sources and news links covering the dismissal of the two lawsuits against Standard Chartered Bank and related whistleblower developments:

Source Links

• JDJournal: https://www.jdjournal.com/2025/09/28/standard-chartered-secures-legal-win-as-u-s-judge-dismisses-terror-financing-claims/
• US News (Reuters): https://www.usnews.com/news/top-news/articles/2025-09-26/standard-chartered-defeats-two-lawsuits-in-us-over-alleged-ties-to-attacks
• EconoTimes: https://www.econotimes.com/US-Judge-Dismisses-Terrorism-Lawsuits-Against-Standard-Chartered-Bank-1721736
• Jerusalem Post: https://www.jpost.com/international/article-868710
• Yahoo News UK: https://uk.news.yahoo.com/standard-chartered-defeats-two-lawsuits-214656174.html
• Justia: https://law.justia.com/cases/federal/district-courts/new-york/nysdce/1:2024cv04484/623067/60/
• PACER Monitor - Fraenkel: https://www.pacermonitor.com/public/case/53877413/Fraenkel_et_al_v_Standard_Chartered_Bank
• PACER Monitor - Brauner: https://www.pacermonitor.com/public/case/54502246/Brauner_et_al_v_Standard_Chartered_Bank
• MoneyPulses: https://moneypulses.com/standard-chartered-shares-rise-as-doj-dismisses-whistleblower-case/

Standard Chartered Statement: https://www.sc.com/en/press-release/us-civil-litigation-press-release/

Investing.com: https://www.investing.com/news/stock-market-news/standard-chartered-climbs-as-doj-dismisses-whistleblower-case-4206097

ADVFN: https://uk.advfn.com/market-news/article/4043/standard-chartered-rises-after-doj-dismisses-whistleblower-claims

Globe Banner: https://globebanner.com/stories/674880544-standard-chartered-comments-on-doj-filing-in-brutus-qui-tam-litigation