HSBC settles money laundering probe

PETE YOST
Last updated 11:56 11/12/2012

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HSBC will pay US$1.9 billion ($2.3 billion) to settle a money-laundering probe by US federal and state authorities into Europe's biggest bank, a law enforcement official says.

According to the official, the bank will pay US$1.25b in forfeiture and pay US$655 million in civil penalties. The US$1.25b figure is the largest forfeiture ever in a case involving a bank. Under what is known as a deferred prosecution agreement, the bank will be accused of violating the Bank Secrecy Act and the Trading With the Enemy Act.
 
The official spoke on condition of anonymity Monday because the source was not authorised to speak about the matter on the record.
 
The London-based bank says it is cooperating with investigations but that those discussions are confidential.

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- AP

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