A federal judge has approved HSBC’s record US$1.92 billion settlement with federal and state investigators of charges that it flouted rules designed to stop money laundering and thwart transactions with countries under US sanctions.
US District Judge John Gleeson in Brooklyn, New York, signed off on a deferred-prosecution agreement, a critical component of the London-based bank’s settlement.
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Gleeson said in his order that he was exercising "supervisory power" over the deal even though the bank and government contended he didn’t have authority to approve or deny it.
As part of the settlement, HSBC agreed to tie executive bonuses to meeting compliance standards, improve the internal sharing of information, and retain a compliance monitor.
The settlement resolves charges accusing HSBC of having degenerated into a preferred financial institution for Mexican and Colombian drug cartels, money launderers and other wrongdoers.
HSBC has accepted compliance lapses, including a failure to maintain an anti-money laundering program, and conducting transactions on behalf of customers in Burma, Cuba, Iran, Libya and Sudan.
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By GlobalDataThe settlement, announced on 11 December last year, included a US$1.26 billion forfeiture and US$665 million in civil fines.
