Friday, January 30th-0.1°C
24624
23613

HSBC's $1.9B money-laundering case

HSBC, the British banking giant, said Tuesday it will pay $1.9 billion to settle a money-laundering probe by federal and state authorities in the United States.

The probe of the bank, Europe's largest by market value, has focused on the transfer of funds through the U.S. financial system from Mexican drug cartels and on behalf of nations like Iran that are under international sanctions.

Stuart Gulliver, Group Chief Executive of HSBC, released a statement Tuesday saying: "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again."

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

A U.S. law enforcement official said Monday that the investigation by federal and state authorities will result in HSBC paying $1.25 billion in forfeiture and paying $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.

Under the arrangement, HSBC will admit to certain misconduct, the official said, but the details of those admissions to be made in a New York court were not immediately available early Tuesday. The official spoke on condition of anonymity because the source was not authorized to speak about the matter on the record.

Nevertheless, the agreement means the bank won't be prosecuted further if it meets certain conditions, such as strengthening its internal controls to prevent money laundering. The Justice Department has used such arrangements often in cases involving large corporations, notably in settlements of foreign bribery charges.

The London-based bank said it is co-operating with investigations but said those discussions are confidential.

In regard to HSBC and Mexico, a U.S. Senate investigative committee reported that in 2007 and 2008 HSBC Mexico sent about $7 billion in cash to the United States. The committee report said that large an amount of cash indicated illegal drug proceeds.

The Canadian Press


Read more Business News

24667


Recent Trending




Today's Market
S&P TSX14608.88-27.08
S&P CDNX667.96+0.85
DJIA17331.31-85.54
Nasdaq4681.635-1.771
S&P 5002010.90-10.35
CDN Dollar0.7864-0.0058
Gold1286.60-5.10
Oil46.77+0.33
Lumber324.60+2.80
Natural Gas2.87-0.111

 
Okanagan Companies
Pacific Safety0.120.00
Knighthawk0.010.00
QHR Technologies Inc1.400.00
Cantex0.04+0.005
Anavex Life Sciences0.185+0.005
Metalex Ventures0.045+0.005
Russel Metals23.580.00
Copper Mountain Mining1.00+0.02
Colorado Resources0.150.00
ReliaBrand Inc0.01+0.0031
Sunrise Resources Ltd0.050.00
Mission Ready Services0.2350.00

 



24497

FEATURED Property
2182741846 Clarance Avenue
5 bedrooms 5 baths
$1,397,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Leaving a job: changing careers

Many people, who find themselves out of work and with time on their hands, and money in their pockets due to lay-off, start thinking about a career change. If you weren’t happy with the directio...


Service fit makes happy employees

Finding the right employees for the front lines of your company is key to developing a great service attitude within your company. It is just as important as hiring the right accountant, manager, sale...


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...

_








Member of BC Press Council


23646