HSBC to Pay $1.9B in Money-Laundering Probe
British banking giant was accused of helping cartels
By Newser Editors and Wire Services
Posted Dec 10, 2012 4:45 PM CST
A sign for HSBC bank is seen at a branch in the City of London, Monday, Aug. 3, 2009.   (AP Photo/Sang Tan)

(Newser) – A law enforcement official says HSBC will pay $1.9 billion to settle a money-laundering probe by federal and state authorities into Europe's biggest bank. According to the official, the bank will 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 bank will be accused of violating the Bank Secrecy Act and the Trading With the Enemy Act.

The official spoke on condition of anonymity today because the source was not authorized to speak about the matter on the record. The London-based bank says it is cooperating with investigations but that those discussions are confidential. The settlement—a huge victory for the US government—arose from allegations that the British bank had helped Mexican drug cartels launder money and moved billions for Iran and other countries under sanctions, reports the New York Times.

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Showing 3 of 11 comments
Dec 11, 2012 11:58 PM CST
Another reason we have to get rid of the Banking cartel and Federal reserve here in the USA, throw all the banks that have any offices overseas out of the country, and by getting rid of the Fed would produce new and improved money printed by our own country and controlled by our country, and would make all the phony money that was printed and sent all over the world.
Dec 11, 2012 5:40 AM CST
the obama administration has carried these kind of deals a lot further than anyone in the bush administration. But we still have a long way to maybe PRISON TIME
Dec 10, 2012 8:00 PM CST
Chump-change cost of doing business.