HSBC to Pay Largest Fine Ever to US Government
By: Big 2 News Staff
Updated: December 11, 2012
Global banking giant HSBC says it will pay a record $1.9 billion to settle U.S allegations the bank ignored red flags pointing to money
laundering.
It's the biggest fine ever against a bank by the US government.
A Senate report earlier this year claimed HSBC Mexico unit shipped $7 billion in cash to its US Affiliates.
The money is believed to be tied to Mexican drug cartels and banks linked to terrorism.
HSBC says it accepts responsibility for its past mistakes.
As part of the agreement, the bank is required to take further actions to strengthen its compliance policies and procedures.
But the nearly $2 billion fine isn't going to cripple HSBC, one analyst says the bank will earn back that much cash in just 41 days.
It's the biggest fine ever against a bank by the US government.
A Senate report earlier this year claimed HSBC Mexico unit shipped $7 billion in cash to its US Affiliates.
The money is believed to be tied to Mexican drug cartels and banks linked to terrorism.
HSBC says it accepts responsibility for its past mistakes.
As part of the agreement, the bank is required to take further actions to strengthen its compliance policies and procedures.
But the nearly $2 billion fine isn't going to cripple HSBC, one analyst says the bank will earn back that much cash in just 41 days.
