Bank to pay record money-laundering fine
Bank found to be moving money in violation of sanctions.
The British-based Hong Kong and Shanghai Banking Corporation (HSBC) has been fined Ä1.9 billion as part of a settlement following a money-laundering probe by U.S. authorities. The investigation revealed the bank moved billions of dollars on the behalf of blacklisted groups such as Iran and Mexican drug cartels.
HSBC has acknowledged its mistake and will pay a settlement to the U.S. government.
This is the largest such forfeiture in history from a bank to the U.S. government.
According to authorities, HSBC handled money on behalf of clients working for Mexican drug cartels as well as moving money between Iran, Syria, Saudi Arabia, and the Cayman Islands. Moving those monies was prohibited by both U.S. and British law.
Iran, in particular, is under tight sanctions to discourage further development of its suspected nuclear weapons program. The sanctions imposed by the international community have effectively crippled that nation's economy, forcing its government to find more creative, and sometimes illegal means of transacting business sin international markets.
"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes," Stuart Gulliver, the bank's CEO said in a statement released on Tuesday.
HSBC is also expected to reach a settlement with British authorities for the same offense.
Meanwhile, Standard Chartered, another British bank is under investigation. According to the US Treasury, Standard Chartered will pay $327 million to settle charges leveled against it concerning money transfers between Iran, Myanmar, Libya, and Sudan.
© 2012, Distributed by NEWS CONSORTIUM.
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Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: HSBC, bank, money-laundering, Iran, drug cartels
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