Another hefty settlement is apparently due to be announced related to charges of money laundering that have hit some of the world’s biggest banks. The Wall Street Journal is reporting that HSBC Holdings plc (NYSE: HBC) has agreed to a record $1.9 billion settlement with various federal agencies for hiding money in bulk cash flows between the U.S. and Mexico and for failing stop transactions related to Iran and other entities that are under U.S. sanctions.
The settlement includes a record $1.3 billion forfeiture as part of a deferred- prosecution agreement and a civil fine of more than $650 million. The bank will also admit to violations of the Bank Secrecy Act and the Trading with the Enemy Act.
We noted earlier today that Britain’s Standard Chartered agreed to a $327 million payment to settle charges related to hiding transactions involving Iranian clients.
HSBC is also under investigation for complicity with Barclays PLC (NYSE: BCS) for manipulating the euro interbank offered rate (Euribor) in much the same way that Barclays fiddled with the Libor rate. MSBC, Credit Agricole SA, and Deutsche Bank AG (NYSE: DB) are also under investigation in the Euribor scheme.
Paul Ausick
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