UK's Standard Chartered Bank has reportedly reached a $340 million settlement with the financial regulators in the US over the allegations that the bank was involved in illegal trading with Iran.

The New York State Department of Financial Services (DFS) has accused the bank of hiding $250 billion in transactions that were linked to the Islamic Republic of Iran. The regulator had described the bank as a "rogue institution" and warned that its state banking licence might be reduced.

The DFC found that the UK based bank, colluded with the Iranian authorities and hid 60,000 secret transactions from law-enforcement officials. It was found that Standard Chartered hid the transactions and generated hundreds of millions of dollars in fees over a period of about ten years. The regulator said that the bank exposed the U. S. banking system to terrorists, drug traffickers and corrupt states.

Standard Chartered spokeswoman Julie Gibson has said that the announcement in New York as set the terms for an agreement that will involve payment of $340 million as civil penalty to the state. The bank will have to strengthen oversight of overseas transactions, according to state Department of Financial Services Superintendent Benjamin Lawsky.

The department hearing on the case that was scheduled for Wednesday has now been adjourned and the date for the payment of the civil penalty is yet to be determined.