The agreements include a Deferred Prosecution Agreement (DPA) with the US Department of Justice and an agreement to achieve a global resolution with all other US government agencies that have investigated HSBC’s past conduct.

The bank also intends to finalize an undertaking with the UK-based regulator, Financial Services Authority (FSA).

Under these agreements with US, HSBC will make payments totaling US$1.921 billion and will continue to cooperate fully with regulatory and law enforcement authorities, and take further action to strengthen its compliance policies and procedures.

Stuart Gulliver, Group Chief Executive, said: "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 organization from the one that made those mistakes. Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."

Under the five-year term of the agreement with the Department of Justice, an independent monitor will evaluate HSBC’s progress in fully implementing these and other measures it recommends, and will produce regular assessments of the effectiveness of HSBC’s compliance function.