You are here: Home - Investing -

UK banks fined record sums for money laundering

Written by:
HSBC and Standard Chartered have agreed record settlements over money laundering allegations as the former agrees to pay $1.9bn to US regulators.

HSBC, which had been alleged to have helped launder money belonging to drug cartels and countries under US sanctions, will pay a total of $1.92bn to settle US investigations and anticipates making a separate settlement with the Financial Services Authority (FSA) “shortly”.

The UK-listed bank came under fire in a US Senate report in July, and subsequently set aside $1.5bn in reserves to cover any agreement with US regulators.

UK peer Standard Chartered has also confirmed it has reached a final settlement with the US Office of Foreign Assets Control regarding accusations it breached US sanctions with Iran.

The bank will pay $327m in the second half of 2012 to settle the issue, on top of the $340m it agreed to pay in August to the New York Department of Financial Services.

HSBC, meanwhile, has also entered into a Deferred Prosecution Agreement with the US Department of Justice, which will see an independent monitor evaluate HSBC’s progress in improving its internal structure, controls and procedures over the next five years.

“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 organisation from the one that made those mistakes,” said group chief executive Stuart Gulliver.

The two banks’ respective settlements represent the two largest penalties ever paid to US authorities by financial institutions for breaching sanctions.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
English want 90 times more savings to feel secure

The English wish they had savings worth ninety times their existing deposit in order to feel financially safe, a poll...