HSBC settlement: British bank to pay nearly $2 billion fine to US authorities over money-laundering case

By on Dec 11, 2012 in Banking, Business, Europe, United States Comments

HSBC, a leading British multinational banking and financial services company, announced its agreement with United States authorities to pay them almost $2 billion, as settlement payment in relation to investigations concerning its inadequate compliance with anti-money laundering and sanctions laws.

HSBC Stuart Gulliver

HSBC Group Chief Executive Stuart Gulliver
Image Credit: Jerome Favre/Bloomberg

According to the press release by HSBC on its official website today, Tuesday, December 11, 2012, their company will pay for a total of $1.92 billion, including a Deferred Prosecution Agreement (DPA) with the US Department of Justice, which is now being dubbed as the largest amount of penalty ever paid by a bank.

In addition, HSBC noted that they will continue to cooperate fully with regulatory and law enforcement authorities, and will provide further action to strengthen its compliance policies and procedures, noting that they have already spent over $290 million on remedial measures over the past several years.

“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.” HSBC Group Chief Executive Stuart Gulliver was quoted at HSBC.com.

“Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters.” Gulliver added, who was appointed in his post on January 1, 2011.

“While we welcome the clarity that these agreements bring, ensuring the highest standards wherever we do business is an ongoing process. 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.” Gulliver further said.

Among the other measures that HSBC Group has mentioned to improve their leadership and strategies include simplifying its control structure, allowing them to manage risks worldwide more effectively, and issuing a new global sanctions policy using a more extensive and consistent set of lists to screen all cross-border payments.



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