Monday, March 1, 2021

HSBC to pay US$1.9 billion to settle money-laundering accusations

The settlement means HSBC will now avoid US prosecution.

Other News

Rayuan saman fitnah NFCorp terhadap Nurul Izzah ditolak

Mahkamah memerintahkan NFCorp dan Mohamad Salleh membayar kos RM50,000.

Muhyiddin’s report card, one year on

In assessing Muhyiddin, one must take into account the twin crises that coincided with his premiership: the Covid-19 pandemic and the resulting economic fallout.

Kes baru Covid-19 kembali turun bawah 2,000

5 lagi kematian menjadikan jumlah 1,135 keseluruhannya.

New cases dip below 2,000

Five more deaths take toll to 1,135.

Pembunuhan pengasas Ambank, mahkamah kekal hukuman mati pesalah

Presiden Mahkamah Rayuan Rohana Yusuf turut mengekalkan hukuman penjara 18 tahun yang dijatuhkan ke atas Koong Swee Kwan.

HSBC has avoided a legal battle that could further dent its reputation and undermine confidence in the global banking system by agreeing to pay US$1.9 billion to settle a US money-laundering probe.

Europe’s largest bank will pay the biggest penalty ever imposed on a bank after facing accusations it transferred funds through the US from Mexican drug cartels on behalf of countries under international sanctions, such as Iran, the Associated Press reports.

Banks have been facing greater scrutiny since the financial crisis of 2008. A succession of unearthed banking scandals has highlighted lax oversight and a culture of arrogance and entitlement.

Last year, a US Senate investigation concluded that HSBC’s ineffective controls meant it became involved in money laundering and terrorist financing. HSBC affiliates also ignored US government bans on financial transactions with Iran and other countries.

Mexico sent around US$7 billion in cash to the US through HSBC. US regulators said such a large amount indicated illegal drug money.

Also, HSBC’s US division provided money and banking services to banks in Saudi Arabia and Bangladesh thought to have funded al-Qaida and other terrorist groups, the Senate report said.

HSBC conceded that its anti-money laundering measures had been inadequate.

“We accept responsibility for our past mistakes,” said HSBC chief executive Stuart Gulliver. He promised that HSBC would continue to strengthen its compliance policies and procedures.

The settlement means the bank will avoid prosecution in the US.

Follow us on Telegram for the latest updates:

Subscribe to our newsletter

To be updated with all the latest news and analyses.

Related Articles

Netanyahu blames Iran for boat attack, says ‘striking’ back

The Israeli army has refused to confirm its involvement in the attack, which came days after the explosion that hit the Israeli-owned MV Helios Ray, a vehicle carrier travelling from the Saudi port of Dammam to Singapore.

Rosmah’s trial for money laundering, tax evasion to start in November

Her trial will begin after the High Court has heard her defence on the corruption case in relation to a solar hybrid project for rural schools in Sarawak.

As profits dive, HSBC heads home to Asia to revive fortunes

The London-based bank already generates the bulk of its revenues from Asia.

Anak-anak matahari Majid Majidi

Sun Children, sudah meraih perhatian di Barat, dan mungkin tercalon untuk Oscar tahun ini.

Mexico begins vaccinating over-60s against Covid-19

Mexico has the world's third-highest Covid-19 death toll, at around 174,000, along with close to two million known cases.