Monday, 11 December 2017

HSBC no longer under threat of prosecution in US over allegations of money laundering



HSBC is no longer under threat of prosecution in the US over allegations of money laundering in Mexico.

 
It signed a deferred prosecution agreement (DPA) - a form of probation - with the US Department of Justice in 2012 to avoid facing criminal charges for allegedly laundering hundreds of millions for Mexican drug barons.


A US probe said the bank had been a conduit for "drug kingpins and rogue nations".


HSBC says the DPA has now expired.


Money laundering is the process of disguising the proceeds of crime so that the money cannot be linked to the wrongdoing.
Following the US probe, HSBC admitted having poor money laundering controls and apologised.


The bank also paid US authorities a record $1.9bn (£1.42bn) settlement.


The UK-based banking giant was also alleged to be handling transactions for countries under US sanctions, such as Iran, Libya and Sudan.


The DPA was brought in to avoid a prosecution, which if it had lead to an indictment, would have meant the US government could no longer have conducted business with the bank.




BBC       News.