HSBC settles a record US$1.92 billion money-laundering case

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HSBC Holdings Plc's record US$1.92 billion settlement with federal and state investigators was approved by a federal judge. HSBC was charged because of disregarding the law. Countries under US sanctions have rules that were designed to end money laundering and thwart negotiations.

U.S. District Judge John Gleeson in Brooklyn, New York noted of the "heavy public criticism" the settlement would bring to HSBC. However, HSBC was able to escape criminal charges so the judge said the decision was "easy, for it accomplishes a great deal."

In December 11, 2012, US$1.256 billion forfeiture and US$665 million in civil fines for HSBC were announced.

The deal resolved charges that accused HSBC. The company was thought to have degenerated into a "preferred financial institution" for Mexican and Colombian drug cartels, money launderers and other wrongdoers.

HSBC's US$1.92 billion payout topped 2009's US$780 million penalty imposed against Swiss bank for tax evasion.

HSBC's spokesman, Rob Sherman, said "While we are making good progress, there is much more to do." He stated that HSBC was taking extensive steps to stop financial crime.

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