Judge OKs $1.9 Billion Penalty for HSBC Over Money Laundering

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NEW YORK -- A federal judge approved a deal that will allow HSBC to pay a record $1.9 billion penalty to settle accusations the British bank helped Mexican drug traffickers, Iran, Libya and others under U.S. suspicion or sanction move money around the world.

The settlement, originally announced in December, is the largest penalty ever imposed on a bank.

The Justice Department's case maintained that HSBC's failure to monitor itself allowed criminals and suspect countries, including Cuba, Myanmar and Sudan, to move hundreds of millions in prohibited transactions through U.S. financial institutions from the mid-1990s through 2006.

Judge John Gleeson of the U.S. District Court for New York's Eastern District approved the plan Monday. It requires court supervision of HSBC (HBC) for five years, after which the U.S. will seek to dismiss the case.


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robantm

Be sure that the CEO gets a whooping bonus this year for keeping the fine under $2 billkion.

July 03 2013 at 7:35 AM Report abuse +3 rate up rate down Reply