The agreement has been reached. AND banking giant HSBC to pay a record $1,9 billion in settlement with US authorities. The agreement aims to resolve the dispute in which they accuse the bank of having ignored for years the indications and signs of violation of the anti-money laundering regulations.
The official announcement came this morning from the top management of HSBC. The bank allegedly violated the Bank Secrecy Act, the legislation that requires financial institutions in the United States to help the government detect and prevent money laundering, and the Trading with Enemy Act, the federal law to limit trade with countries hostile to United States.
Last summer, HSBC took to Congress to respond to money laundering allegations, contained in a Senate report which highlighted that the bank had ignored repeated warnings about failing to comply with existing money laundering rules, with funds from Mexico and related to drugs laundered through the bank, allowing terrorists in the Middle East to obtain US dollars.
The 400-page Senate report followed a years-long investigation. HSBC has provided $1 billion in cash to a Saudi Arabian bank with suspected ties to terrorism, including al Qaeda, according to the Senate report. The institute also allegedly carried out 16 billion dollars in transactions with Iran in the period 2001-2007.
