This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/business/2012/dec/11/hsbc-bank-us-money-laundering
The article has changed 7 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| HSBC to pay £1.2bn over US money-laundering accusations | |
| (35 minutes later) | |
| HSBC is to pay a record $1.9bn (£1.2bn) to settle allegations it laundered money for drug cartels and broke sanctions in the US to allow terrorists to move money around the financial system, in the latest embarrassment for Britain's banks. | HSBC is to pay a record $1.9bn (£1.2bn) to settle allegations it laundered money for drug cartels and broke sanctions in the US to allow terrorists to move money around the financial system, in the latest embarrassment for Britain's banks. |
| The bank's chief executive, Stuart Gulliver, said he was "profoundly sorry" as he confirmed the scale of the fine – the largest for such an offence and even greater than the £940m the bank had feared it faced after the allegations first surfaced in the summer. | |
| "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again," he said, insisting Britain's biggest bank was "a fundamentally different organisation" now. | "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again," he said, insisting Britain's biggest bank was "a fundamentally different organisation" now. |
| He took the helm two years ago during a management reshuffle caused by the decision by Stephen Green, the chairman, to quit to join the government as a trade minister. David Bagley, the bank's head of compliance, dramatically quit before the US Senate committee hearing into the case in July and on Monday HSBC named a former US official – Bob Werner – as head of group financial crime compliance, a newly created role, as the bank prepared for the fine related to drug allegations. | |
| The penalty includes a five-year agreement with the US department of justice under which the bank will install an independent monitor who will assess the bank's changed internal controls. | The penalty includes a five-year agreement with the US department of justice under which the bank will install an independent monitor who will assess the bank's changed internal controls. |
| "Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters," Gulliver said. | "Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters," Gulliver said. |
| "We are committed to protecting the integrity of the global financial system. To this end we will continue to work closely with governments and regulators around the world," he added. | "We are committed to protecting the integrity of the global financial system. To this end we will continue to work closely with governments and regulators around the world," he added. |
| The US Senate said the bank had operated a "pervasively polluted" culture that lasted for years, allowing HSBC to move billions around the financial system for Mexican drug lords, terrorists and governments on sanctions lists. HSBC's Mexican operations moved $7bn into the US operations, for instance, which the Senate was told was tied to drug money. | The US Senate said the bank had operated a "pervasively polluted" culture that lasted for years, allowing HSBC to move billions around the financial system for Mexican drug lords, terrorists and governments on sanctions lists. HSBC's Mexican operations moved $7bn into the US operations, for instance, which the Senate was told was tied to drug money. |
| HSBC said it also expected to finalise an "undertaking" with its home regulator, the Financial Services Authority, "shortly". | HSBC said it also expected to finalise an "undertaking" with its home regulator, the Financial Services Authority, "shortly". |
| The embarrassment for HSBC comes barely 24 hours after Standard Chartered paid £415m to US regulators, and as banks brace for a wave of fines for attempting to rig Libor following the £290m penalty slapped on Barclays in June. | The embarrassment for HSBC comes barely 24 hours after Standard Chartered paid £415m to US regulators, and as banks brace for a wave of fines for attempting to rig Libor following the £290m penalty slapped on Barclays in June. |
| Gulliver repeated that the bank had clawed back bonuses of those involved. The bank has also spent $290m on improving its systems to try to avoid a re-run of the events. | Gulliver repeated that the bank had clawed back bonuses of those involved. The bank has also spent $290m on improving its systems to try to avoid a re-run of the events. |