Standard Chartered Plc (STAN) settled a money laundering probe with New York's financial-services regulator for $340 million a day before the U.K.-based bank was to appear at a hearing to defend its right to continue operating in the state.

As part of the agreement, the bank has agreed to install an on-site monitor for a term of at least two years who will report directly to state officials. New York regulators will also place examiners at the bank. As a result of the agreement, announced today in an e-mailed statement, the hearing that had been scheduled for tomorrow has been adjourned.

On Aug. 6, Benjamin Lawsky, head of the New York Department of Financial Services, issued an order accusing the bank of helping Iran launder about $250 billion in violation of federal laws. One analyst estimated loss of the bank’s New York license could result in a 40 percent drop in earnings.

A person familiar with the case said that Lawsky had sought as much as $700 million to settle the investigation.

The resolution still leaves the London-based bank the subject of investigations by the U.S. Treasury, the Federal Reserve Bank, the Justice Department and the Manhattan District Attorney.

To contact the reporter on this story: Greg Farrell in New York at gregfarrell@bloomberg.net.

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net.