Monday, November 5, 2012

Top firm fears U.S. money laundering fines to top $1.5 billion



Reuters reports that a U.S. fine for anti-money laundering rule breaches could cost HSBC , Europe’s biggest bank, significantly more than $1.5 billion and is likely to lead to criminal charges..

HSBC said the U.S. investigation had damaged the bank's reputation and forced it to set aside a further $800 million to cover a potential fine for breaches in anti-money laundering controls in Mexico, adding to $700 million put aside in July.

The timing of any settlement is in the hands of regulators and is likely to involve the filing of corporate criminal and civil charges, the bank said.  A U.S. Senate report in July criticized HSBC for letting clients shift potentially illicit funds from countries such as Mexico, Iran, the Cayman Islands, Saudi Arabia and Syria…..

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