By Yvonne Lee

HONG KONG--Standard Chartered PLC (STAN.LN) on Tuesday rejected allegations by New York's top financial regulator that one of the lender's units was running a "rogue institution" that "schemed" with Iran's government to hide more than $250 billion in illegal transactions for nearly a decade.

"The group does not believe the order issued by the DFS [New York State Department of Financial Services] presents a full and accurate picture of the facts," Standard Chartered Group Company Secretary Annemarie Durbin said in a statement.

"The group takes its responsibilities very seriously, and seeks to comply at all times with the relevant laws and regulations," the statement said.

New York's Department of Financial Services made the accusation Monday, and threatened to revoke the license of Standard Chartered Bank. The agency ordered officials of the U.S.-based subsidiary to "explain these apparent violations of law" at a hearing later this month.

Write to Yvonne Lee at yvonne.lee@dowjones.com