UK based bank Standard Chartered, which came under the radar of New York's banking regulator over its alleged role in money laundering to Iran.

Recently, the regulators accused the UK lender for its alleged role of facilitating transaction with Iranian banks including Central Bank of Iran, as reported by the Reuters.

Both parties are locked horn over the matter, in which the federal regulator accused the bank that it carried out nearly $250bn of transaction, while StanChart denied and said the total amount that the bank failed to comply with the US sanctions on Iran was less than $14m.

Standard Chartered chief executive Peter Sands is negotiating with the regulators ahead of a hearing in which the bank will have to demonstrate why its state banking license should not be canceled.

It is understood that New York’s Department of Financial Services and StanChart are also engaged in talk to reach a potential amount of fine, which may be in between $350m to $250m.

If the regulators revoked Standard Chartered state banking license, it will completely isolate from getting direct access to the US market.

In similar cases, Lloyds Banking Group paid $350m in 2009 to settle charges it altered records for clients from Iran and other countries, Credit Suisse AG paid $536m the same year, Barclays agreed to pay $298m in 2010, and in June ING Bank agreed to pay $619m.