HSBC to Pay US$1.9B to Settle Money Laundering Claims

UK-based bank, HSBC, is to pay U.S. authorities US$1.9 billion to settle allegations of money-laundering.

 

A probe by a Senate Permanent Subcommittee on Investigations found that HSBC and its U.S. affiliate exposed the U.S. financial system to a wide array of money laundering, drug trafficking, and terrorist financing risks due to poor anti-money laundering (AML) controls.

 

Following the Senate report, HSBC apologised to investors for compliance failures and admitted its money laundering controls were not strong enough.

 

The $1.9 billion sum in the HSBC settlement is expected to include around $1.25 billion forfeited by HSBC - the largest amount ever paid out in such a case - and a $650 million civil fine.
 

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