HSBC to pay $1.9 billion U.S. fine in money-laundering case |
| Reuters - Dec 11, 2012 |
HSBC has agreed to pay a record $1.92 billion fine to settle a multi-year probe by U.S. prosecutors, who accused Europe's biggest bank of failing to enforce rules designed to prevent the laundering of criminal cash.
The U.S. Justice Department on Tuesday charged the bank with failing to maintain an effective program against money laundering and conduct due diligence on certain accounts.
In documents filed in federal court in Brooklyn, it also charged the bank with violating sanctions laws by doing business with customers in Iran, Libya, Sudan, Burma and Cuba.
HSBC Holdings Plc admitted to a breakdown of controls and apologized for its conduct.
"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organization from the one that made those mistakes," said Chief Executive Stuart Gulliver.
In an agreement with the Justice Department, the bank will take steps to fix the problems, pay a fine of $1.256 billion, and retain a compliance monitor to resolve the charges through a deferred-prosecution agreement. Including penalties imposed by other agencies, the bank's fines total $1.92 billion. HSBC also faces civil penalties, to be announced later Tuesday.
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- Posted: 2012-12-11 14:04:10
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