Update | HSBC released from US deferred criminal charges
Bank has initially paid a US$1.9b fine in 2012 for failing to prevent Mexican cartels from laundering millions of dollars through its systems and also agreed a deferred agreement under which the US justice department could have imposed further penalties or begun criminal prosecution
HSBC has said it is being released from a 2012 agreement that allows it to avoid criminal charges in the US by the country’s Department of Justice for money laundering, following the expiration of the five-year deferred prosecution agreement (DPA) between the two parties.
The British registered bank paid a US$1.9 billion fine for failing to prevent Mexican cartels from laundering millions of dollars through its systems, and also agreed a DPA under which the justice department could have imposed further financial penalties on the bank, or begin criminal prosecution.
The justice department could also have extended the agreement for longer than the five years – but the fact it has now dismissed further action will come as a huge relief to the bank.
In a statement, HSBC said that the Department of Justice would file a motion with the US District Court for the Eastern District of New York seeking the dismissal of the charges deferred by the agreement.
“HSBC is pleased the Department of Justice has recognised HSBC’s progress in strengthening its anti-money laundering and sanctions compliance capabilities over the past five years,” the statement said.
