HSBC to Pay $1.9 Billion in Money-Laundering Settlement


Updated on Mon Dec 10, 2012

HSBC has agreed to pay $1.9 billion to settle allegations it ignored widespread money-laundering by rogue nations and drug cartels. If the amount of the settlement turns out to be accurate — an official announcement is expected tomorrow — it would be the largest such settlement in banking history.

Businessweek has the details:

HSBC has been in talks with U.S. regulators over allegations it laundered funds of sanctioned nations including Iran and Sudan. The probes prompted Standard & Poor’s to question whether the lender, Europe’s largest by market value, is too big to be managed effectively.

The settlement would also surpass the $619 million in penalties paid in June by ING Groep NV, the biggest Dutch financial-services company.

Additional coverage is available at the New York Times’ Dealbook.

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