Archive for December, 2012

Biggest bank forfeiture ever: HSBC to pay USD 1.9 Billion to settle money-laundering case

Thursday, December 20th, 2012

HSBC will pay USD 1.9 billion to settle a US. money-laundering probe to avoid a protracted legal battle that would have further embarrassed the British banking giant.

The probe of Europe’s largest bank by market value focused on the transfer of funds through the US financial system from Mexican drug cartels and on behalf of nations such as Iran that are under international sanctions.

HSBC said in a statement that its anti-money laundering measures were inadequate and it had since made strides in beefing up its controls. The bank also said it has reached agreements over investigations by other United States’ government agencies. Also, it expects to sign an agreement with British regulators soon.

“We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again,” HSBC Chief Executive Stuart Gulliver said in a statement.