(Image source: BBC)

 

 

BY ZACH TOOMBS

 

 

One of the world’s biggest banks will suffer a nearly-$2 billion penalty, paid to the U.S. government, for allegedly handling money for terrorists and sanctioned nations.

 

HSBC is the largest bank in Europe, and the U.S. accuses it of moving around funds for terrorists in Russia, people linked to Mexican drug cartels and for the government in Iran, despite heavy sanctions placed on the country. [Video: Sky News]

 

A 400-page July report from the U.S. Senate subcommittee on investigations said HSBC had “exposed the U.S. financial system to money laundering and terrorist financing risks.” [Video: C-Span]

 

This settlement is the end-result of that report. The New York Times reports Manhattan’s district attorney, the Justice Department and the Treasury Department are all involved in the case.

 

HSBC is expected to give up


- $1.2 billion forfeited via the settlement

- $600-700 million in civil fines

 

Other banks have been accused of similar behavior — but never punished quite on this scale. ING gave up $619 million for moving around U.S. dollars for both Iran and Cuba just this year. The BBC says the HSBC penalty is seen as a sign to those other banks to stay on the straight and narrow.

 

“Since 2009, American authorities have really tried to crack down on banks that they believe have been laundering money, transferring money through the United States. Particularly, they’re focused on countries where they have sanctioning.”

 

This past summer, HSBC’s compliancy chief apologized for his banks dealings and stepped down. No word yet on any further resignations this week’s settlement might bring.

HSBC to Pay $1.9 Billion for Dealings with Terrorists

by Zach Toombs
0
Transcript
Dec 10, 2012

HSBC to Pay $1.9 Billion for Dealings with Terrorists

(Image source: BBC)

 

 

BY ZACH TOOMBS

 

 

One of the world’s biggest banks will suffer a nearly-$2 billion penalty, paid to the U.S. government, for allegedly handling money for terrorists and sanctioned nations.

 

HSBC is the largest bank in Europe, and the U.S. accuses it of moving around funds for terrorists in Russia, people linked to Mexican drug cartels and for the government in Iran, despite heavy sanctions placed on the country. [Video: Sky News]

 

A 400-page July report from the U.S. Senate subcommittee on investigations said HSBC had “exposed the U.S. financial system to money laundering and terrorist financing risks.” [Video: C-Span]

 

This settlement is the end-result of that report. The New York Times reports Manhattan’s district attorney, the Justice Department and the Treasury Department are all involved in the case.

 

HSBC is expected to give up


- $1.2 billion forfeited via the settlement

- $600-700 million in civil fines

 

Other banks have been accused of similar behavior — but never punished quite on this scale. ING gave up $619 million for moving around U.S. dollars for both Iran and Cuba just this year. The BBC says the HSBC penalty is seen as a sign to those other banks to stay on the straight and narrow.

 

“Since 2009, American authorities have really tried to crack down on banks that they believe have been laundering money, transferring money through the United States. Particularly, they’re focused on countries where they have sanctioning.”

 

This past summer, HSBC’s compliancy chief apologized for his banks dealings and stepped down. No word yet on any further resignations this week’s settlement might bring.

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