Due to poor AML controls, HBUS exposed the United States to Mexican drug money, suspicious travelers cheques, bearer share corporations, and rogue jurisdictions. President Barack Obama received more than $75,000 from HSBC during the 2008 and 2012 campaigns. HSBC used its U.S. bank as a gateway into the U.S. financial system for some HSBC affiliates around the world to provide U.S. dollar services to clients while playing fast and loose with U.S. banking rules.
BY: Washington Free Beacon Staff
December 6, 2012 5:33 pm
Europe’s largest bank, Hong Kong and Shanghai Banking Corporation (HSBC), is negotiating a settlement with U.S. federal prosecutors for violating anti-money laundering laws, according to Reuters.
HSBC Holdings Plc might pay a fine of $1.8 billion as part of a settlement with US law-enforcement agencies over money-laundering lapses, according to several people familiar with the matter.
The settlement with Europe’s biggest bank—which could be announced as soon as next week—will likely involve HSBC entering into a deferred prosecution agreement with federal prosecutors, said the sources, who spoke on condition of anonymity.
President Barack Obama received more than $75,000 from HSBC during the 2008 and 2012 campaigns.
HSBC was hardly blindsided by the probe. The bank set aside $1.5 billion last month in preparation for a similar fine owed to the Mexican government for related violations. The cost for breaching laws in America may be “significantly higher,” according to Chief Executive Stuart Gulliver.
A July Senate Subcommittee report revealed that HSBC “exposed the U.S. financial system to a wide array of money laundering, drug trafficking, and terrorist financing risks due to poor anti-money laundering (AML) controls.” Sen. Carl Levin (D., Mich.) was the subcommittee chairman who oversaw investigations: