HSBC Holdings and HSBC Bank USA Reached $1.92 Billion AML and Sanctions Resolution
Company: HSBC Holdings plc
Summary
In December 2012, HSBC Holdings plc and HSBC Bank USA entered a major U.S. criminal and regulatory resolution over anti-money-laundering and sanctions violations. The U.S. Department of Justice said HSBC agreed to forfeit $1.256 billion and enter a deferred prosecution agreement. HSBC also agreed to pay $665 million in civil penalties, bringing the combined penalties and forfeitures to approximately $1.92 billion. DOJ stated that HSBC Bank USA failed to maintain an effective anti-money-laundering program and adequate due diligence over foreign correspondent accounts. U.S. prosecutors said at least $881 million in narcotics-trafficking proceeds moved through HSBC Bank USA and that the group also processed prohibited transactions involving sanctioned jurisdictions. HSBC accepted responsibility for the conduct and agreed to enhanced compliance obligations and independent monitoring. Source: U.S. Department of Justice https://www.justice.gov/archives/opa/pr/hsbc-holdings-plc-and-hsbc-bank-usa-na-admit-anti-money-laundering-and-sanctions-violations