Banking
Money Laundering

$1.9 Billion Settlement Expected In HSBC Money-Laundering Case

Burgess COMMENTARY
I have nothing but contempt for the top level executives in the global banking industry. They have made millions ... or is it billions or trillions ... from business transactions that have been made illegal in order to help keep the world somewhat protected from gross criminal activity. Despite this the banks have seen fit to break the law and make profit ... and then the executives pay themselves huge bonuses because of their performance.

The settlement is only money. There is no 'accountability' in the sense that the people who made these decisions pay little or no price ... they do not do time in prison ... they do not suffer social disdain. For the executives responsible ... business goes on ... life goes on.

It is good that the bank has to pay some price ... but I want to see some public humiliation for the crooks ... that is executives, that run the bank.
Peter Burgess

$1.9 Billion Settlement Expected In HSBC Money-Laundering Case

The $1.9 billion settlement from British banking firm HSBC will settle allegations of allowing money laundering and transfers of billions from Iran. (Timur Emek / Getty Images)

Federal and state authorities will announce a record $1.9 billion settlement with British banking firm HSBC on Tuesday, NPR has confirmed with a source familiar with the settlement.

The deal will settle allegations that HSBC ignored red flags of massive money laundering by Mexican drug cartels and allowed transfers of billions of dollars from nations like Iran and Sudan, which are under U.S. sanctions.

Along with forfeiting $1.3 billion, according to The Wall Street Journal, the bank will also pay a civil fine of $650 million. The settlement will also resolve other investigations by the Justice Department, the Treasury Department and other federal agencies.

According to the news reports, as part of the deal the bank will also admit to violating the Bank Secrecy Act and the Trading with the Enemy Act.

Back in July, HSBC's head of group compliance, David Bagley, resigned in the middle of a Senate hearing looking into the case.

On Monday, federal authorities also announced that another British bank, Standard Chartered, agreed to a settlement of $327 million over allegations it had funneled money for Iranian and Sudanese clients through American subsidiaries.

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