DoJ dismisses HSBC criminal charges

DoJ dismisses HSBC criminal charges

The bank paid a $1.9 billion fine and entered a five-year deferred prosecution agreement in 2012 for failing to prevent Mexican drug cartels from laundering hundreds of millions of dollars through it and also for handling transactions with Iran and other countries forbidden under USA sanctions. The deal — which came four years after the 2008 collapse of Lehman Bros. almost brought down the financial system — was criticized at the time, raising concerns about whether some banks had grown too big to face criminal indictment.

HSBC'S bad phase is over as the prosecution in the U.S. has released HSBC from the charges of money laundering in Mexico.

Prosecutors also said at the time that the bank had enabled the transfer of hundreds of millions of dollars to countries facing USA sanctions, including Cuba and Iran.

United States prosecutors had deferred a criminal process against HSBC as part of a settlement reached in 2012.

The bank signed a document known as the deferred prosecution agreement or DPA that is considered a type of probation.

The probe by the US said the bank was the conduit for the rogue nations and drug kingpins.

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Gulliver continued by say the bank was committed to doing its part in protecting the global financial system's integrity, and further improvement to its own contributions and capability toward this partnership.

HSBC said it has lived up to its commitments under the five-year deal signed in December 2012, under which it pledged to strengthen its sanctions and anti-money laundering controls.

No such filings related to HSBC had been made by late morning in NY.

The DoJ's decision removes the threat of criminal prosecution from HSBC for the offences, in which the bank allegedly helped to launder $881m (£658m) for drug cartels in Mexico and Colombia.

Following its signing of the DPA in 2012, HSBC embarked on a worldwide programme of upgrading its compliance systems to USA standards, raising its spending to more than US$1 billion a year.

The agreement included as well an appointment of an independent monitor for compliance who produced assessments annually of the effectiveness of the anti-money laundering of the group and its program for sanctions compliance. It pleaded guilty to conspiring to aid tax evasion and paid about $2.6 billion in penalties.

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