HSBC to pay $1.9B to settle money-laundering case
British bank HSBC has agreed to pay $1.9 billion to settle a New York based-probe in connection with the laundering of money from narcotics traffickers in Mexico, U.S. authorities announced Tuesday.
The move avoids a legal battle that could further savage the bank’s reputation and undermine confidence in the global banking system. The announcement was made by Assistant Attorney General Lanny A. Breuer and U.S. Attorney Loretta A. Lynch in Brooklyn.
At least $881 million in drug trafficking proceeds was laundered through HSBC Bank USA, violating the Bank Secrecy Act, U.S. authorities said.