HSBC pay fines $ 1.9 billion in U.S. money laundering
HSBC has confirmed that it has to pay the U.S. government $ 1.9 billion (€ 1.2 billion) in a settlement on money laundering, the highest paid in such a case.
A U.S. Senate investigation said the British bank was a source of "drug leaders and rogue states". Money laundering is the process to conceal the proceeds of crime, so that the money can not be linked to the offense.
HSBC gave poor control of money laundering and apologized.
"We have said that we are deeply sorry for them, and we do so again."
The bank said the $ 290m spent on improving its systems for money laundering prevention and regained some bonuses for senior executives in the past. It also said it expected an agreement with the Financial Services Authority in the United Kingdom will soon reach. In last month announced it had set aside $ 1.5 billion for the price of a settlement or penalties to cover.
Senate criticism
The settlement was widely expected after a report from the U.S. Senate, published earlier this year, which was highly critical of the HSBC Money Laundering Control.
The report stated that:
1. HSBC in the United States have not been treated Mexican branch as a high risk, despite money laundering and drug trafficking from the country challenges
2. The Mexican bank had transported 7 billion U.S. banknotes to HSBC in the United States, more than any other Mexican bank, but does not consider it to be suspicious
3. It had circumvented the American guarantees for transactions with terrorists and drug lords rogue states, including making 25 thousand transactions over seven years to block without revealing their contacts with Iran
4. Provided dollar and banking services to a number of banks in Saudi Arabia, despite their ties to terrorist financing
5. In less than four years had cleared $ 290m in "naturally suspicious" U.S. traveler's checks to a Japanese bank for the benefit Russians, who claimed to have been in the used car business
He will be responsible for beefing HSBC money laundering and sanctions compliance systems.
It is unclear what impact the case will have on the business of HSBC. The bank is the largest in Europe by market capitalization and a profit before tax of $ 12.7 billion made for the first six months of 2012.
HSBC has confirmed that it has to pay the U.S. government $ 1.9 billion (€ 1.2 billion) in a settlement on money laundering, the highest paid in such a case.
A U.S. Senate investigation said the British bank was a source of "drug leaders and rogue states". Money laundering is the process to conceal the proceeds of crime, so that the money can not be linked to the offense.
HSBC gave poor control of money laundering and apologized.
"We have said that we are deeply sorry for them, and we do so again."
The bank said the $ 290m spent on improving its systems for money laundering prevention and regained some bonuses for senior executives in the past. It also said it expected an agreement with the Financial Services Authority in the United Kingdom will soon reach. In last month announced it had set aside $ 1.5 billion for the price of a settlement or penalties to cover.
Senate criticism
The settlement was widely expected after a report from the U.S. Senate, published earlier this year, which was highly critical of the HSBC Money Laundering Control.
The report stated that:
1. HSBC in the United States have not been treated Mexican branch as a high risk, despite money laundering and drug trafficking from the country challenges
2. The Mexican bank had transported 7 billion U.S. banknotes to HSBC in the United States, more than any other Mexican bank, but does not consider it to be suspicious
3. It had circumvented the American guarantees for transactions with terrorists and drug lords rogue states, including making 25 thousand transactions over seven years to block without revealing their contacts with Iran
4. Provided dollar and banking services to a number of banks in Saudi Arabia, despite their ties to terrorist financing
5. In less than four years had cleared $ 290m in "naturally suspicious" U.S. traveler's checks to a Japanese bank for the benefit Russians, who claimed to have been in the used car business
He will be responsible for beefing HSBC money laundering and sanctions compliance systems.
It is unclear what impact the case will have on the business of HSBC. The bank is the largest in Europe by market capitalization and a profit before tax of $ 12.7 billion made for the first six months of 2012.
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