HSBC Free From Charges In US court
HSBC’S bad phase is over as the prosecution in the US has released HSBC from the charges of money laundering in Mexico.
HSBC had to sign a deferred prosecution agreement (DPA) with the US Department of Justice in the year 2012 to defend against an allegation of laundering hundreds of millions for Mexican drug barons. Had the allegations turned out to be true, under signed DPA US would stop any transaction with the bank.
However, HSBC has informed that the DPA is now expired. It has also aplogised for having poor money laundering rules and has paid penalty amount of $1.9bn to US authorities fulfilling the settlement requirements.
The DPA also arranged for the appointment of an independent compliance monitor who will make annual assessments of the effectiveness of the group’s anti-money laundering and sanctions compliance programme under the direction of UK’S Financial Conduct Authority (FCA).
The monitor has also been serving since July 2013 as HSBC’s Skilled Person. This arrangement will continue for some more period, the bank informed. It further stated that DOJ will soon file a demand in US court asking for the dismissal of the charges.