15:09 11 December 2012
HSBC has agreed to pay $1.9bn (£1.18bn) to the US after agreeing that their money laundering rules were not up to scratch. As a result, as stated in a report by the US Senate, the financial system of America was bared to drug cartels.
It is understood that the group will pay a deferred prosecution agreement, in regards to America’s Ministry of Justice. It is thought this will be derived from the $1.92bn amount.
HSBC have apologised for their errors, with HSBC Chief Executive Stuart Gulliver saying in a statement.
“We accept responsibility for our past mistakes.” He added: “We have said we are profoundly sorry for them.”
The group are understood to be working with “governments and regulators around the world” regarding to the matter, and based on reports, HSBC’s progress will face scrutiny over the next coming years.
This news comes as the latest on the bank with regards to money laundering. Mr. Gulliver had previously warned that the company could expect a settlement pay-out. Although, it is thought he quoted this amount as being $4bn shy of the recently agreed penalty.
The Chief’s reasons for expecting a penalty comes down to a report published by the US Senate this year, which criticised HSBC over its money laundering rules. The bank made an apology during the summer months of 2012.
It is believed that the group appeared before a committee with regards to money laundering.
HSBC were thought to have been inefficient in complying with rules that focused on anti-money laundering. However, they are not the only bank to be investigated, as the US are understood to be clamping down on the breach of money laundering rules.
HSBC has recently appointed Bob Werner as head of Financial Crime Compliance.
Money laundering relates to disguising crime so that any monies may not be connected to wrong-doing.
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