New York, NY, United States (4E) – HSBC Holdings Plc, Europe’s largest bank, is reportedly paying around $1.9bn for their settlement of money laundering allegations with U.S. regulators, making it the largest penalty ever according to sources familiar with the matter.
That figure includes about $1.3bn in forfeiture under the deferred-prosecution agreement, a record amount for a single bank. Sources also say that the deal will include a civil fine amounting to $650mn.
The settlement amount would finally resolve the various investigations conducted by several federal agencies including the Treasury Department’s Office of Foreign Asset Controls, U.S. Department of Justice, the Federal Reserve and Office of the Comptroller of the Currency, as well as the Manhattan district attorney.
The bank, has been a target of multiple investigations after top executives were alleged of lax oversight by a U.S. Senate subcommittee back in July.
The Senate committee cited HSBC’s failures in their money-laundering controls, which allowed drug cartels and terrorists to access the U.S. financial system.
The deal also includes the bank admitting to violations of the Bank Secrecy Act and the Trading with the Enemy Act. Officials say that the deal could be announced on Tuesday in New York.