Banking

HSBC to Pay Nearly $2 Billion over Money Laundering Probe

Europe's biggest bank accused of helping facilitate transactions for Mexican drug lords

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WASHINGTON — 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 Monday because the source was not authorized to speak about the matter on the record.

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  1. …”chairman Sen. Carl Levin, D-Mich., said […] “Due to poor (anti-money laundering) controls, (HSBC’s U.S. division) exposed the United States to Mexican drug money, suspicious travelers cheques, bearer share corporations, and rogue jurisdictions.”…

    Who is this “United States” who was “exposed”?
    Rule of law? Which law was broken?

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