Bank to pay record money-laundering fine
Bank found to be moving money in violation of sanctions.
The British-based Hong Kong and Shanghai Banking Corporation (HSBC) has been fined Ä1.9 billion as part of a settlement following a money-laundering probe by U.S. authorities. The investigation revealed the bank moved billions of dollars on the behalf of blacklisted groups such as Iran and Mexican drug cartels.
This is the largest such forfeiture in history from a bank to the U.S. government.
According to authorities, HSBC handled money on behalf of clients working for Mexican drug cartels as well as moving money between Iran, Syria, Saudi Arabia, and the Cayman Islands. Moving those monies was prohibited by both U.S. and British law.
Iran, in particular, is under tight sanctions to discourage further development of its suspected nuclear weapons program. The sanctions imposed by the international community have effectively crippled that nation's economy, forcing its government to find more creative, and sometimes illegal means of transacting business sin international markets.
"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," Stuart Gulliver, the bank's CEO said in a statement released on Tuesday.
HSBC is also expected to reach a settlement with British authorities for the same offense.
Meanwhile, Standard Chartered, another British bank is under investigation. According to the US Treasury, Standard Chartered will pay $327 million to settle charges leveled against it concerning money transfers between Iran, Myanmar, Libya, and Sudan.
© 2014 - Distributed by THE NEWS CONSORTIUM
Pope Francis Prayer Intentions for March 2014
Respect for Women: That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lordís invitation to consecrate their lives to proclaiming the Gospel.
Rate This Article
Leave a Comment
More Business & Economics News
- Wowza! Restaurant starts charging diners for Obamacare
- Time banking - where time is BETTER than MONEY
- Google tops Exxon as world's second-most valuable company - for a day
- Bill Gates thinks poverty will be eliminated by 2035... But he's missing this one thing!
- World's richest playboys forgot to address the world's most serious problems between parties in Davos
- CROWDFUNDING: Brother, can you spare - funding for my new movie project?
- Here we go again! Increase the government's borrowing limit before late February, Treasury Secretary warns
- Pope Francis sends a message to Davos elites -- they'd do well to listen
- For each baby born since Obama took office, debt has increased by $1,608,304
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.