Open

Coming up

Don't miss

Replay


LATEST SHOWS

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Shakespeare’s 450th Birthday : The Best of the Bard

Read more

BUSINESS DAILY

The Tour de France, a PR machine

Read more

IN THE PAPERS

Coverage of the third plane crash in one week - from France, Algeria and Burkina Faso

Read more

IN THE PAPERS

Coverage of the plane crash that took 116 lives - almost half of them French

Read more

DEBATE

Gaza: A Truce At All Costs?

Read more

AFRICA NEWS

Central African Republic: Brazzaville ceasefire talks deliver fragile deal

Read more

FOCUS

Sluggish tourist season in Crimea

Read more

ENCORE!

Bartabas : Mixing Christ with Spanish music and dancing horses

Read more

  • Live: ‘No survivors’ from Algerian plane crash, says Hollande

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • LA Times wipes France off the map in air crash infographic

    Read more

  • Tour de France fans bring the ambience to the Pyrenees

    Read more

  • Ukraine names acting PM after Yatseniuk's shock resignation

    Read more

  • Deadly strike on UN shelter in Gaza Strip

    Read more

  • Wreckage of Algeria plane found in Mali

    Read more

  • BNP to pay $80 million for defrauding Dept of Agriculture

    Read more

  • Pope meets Christian woman sentenced to death in Sudan

    Read more

  • Italy’s Nibali cruises to victory in 18th stage of Tour de France

    Read more

  • Iraqi parliament elects moderate Kurd as president

    Read more

  • US, European agencies lift travel restrictions to Tel Aviv

    Read more

  • No end to fighting until Israel ends Gaza blockade, Hamas says

    Read more

Business

HSBC to pay $1.92 billion in US money laundering case

Text by FRANCE 24

Latest update : 2012-12-11

HSBC said Tuesday that it had agreed to pay US authorities a record $1.92 billion to settle allegations of money laundering as part of a deal that would ensure the bank will not prosecuted provided it strengthens internal controls.

Banking giant HSBC said Tuesday that it had agreed to pay US authorities a record $1.92 billion to settle US money laundering accusations.

The investigation into Europe’s largest bank had focused on the transfer of billions of dollars on behalf of nations such as Iran and the transfer of money from Mexican drug cartels.

A US law enforcement official said Monday that HSBC would pay $1.25 billion in forfeiture and pay $655 million in civil penalties. The $1.25 billion figure is the largest forfeiture ever in a case involving a bank.

Under what is known as a deferred prosecution agreement, the financial institution will be accused of violating the Bank Secrecy Act and the Trading With the Enemy Act but will not be prosecuted further if it meets certain conditions, such as strengthening its internal controls to prevent money laundering.

"HSBC has reached agreement with United States authorities in relation to investigations regarding inadequate compliance with anti-money laundering and sanctions laws," the Hong Kong-listed lender said in a statement.

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again," group chief executive Stuart Gulliver said in the statement.

"The HSBC of today is a fundamentally different organisation from the one that made those mistakes," he added.

"We are committed to protecting the integrity of the global financial system. To this end, we will continue to work closely with governments and regulators around the world."

The bank said it has also reached agreements in connection with investigations by other US government agencies. It expects to sign an agreement with British regulators shortly.

US lawmakers accused the global bank in July of giving Iran, terrorists and drug dealers access to the US financial system. The firm soon afterwards apologised for failing to apply anti-money laundering rules and a senior executive resigned.

David Bagley, the head of group compliance for HSBC in London, was forced to step down from his post in the wake of a US Senate subcommittee's damning report on the bank's operations.

In early November, HSBC said it had set aside $1.5 billion for fines linked to money laundering allegations in the United States.

(FRANCE 24 with wires)

Date created : 2012-12-11

  • BANKING

    HSBC to hire 15,000 in emerging markets

    Read more

COMMENT(S)