HSBC agrees to pay $1.9 billion in money-laundering probe

HSBC agrees to pay $1.9 billion in money-laundering probeUK banking major, HSBC has said on Tuesday that it has agreed to pay $1.9 billion to settle a money-laundering investigation being carried out by federal and state authorities in the US.

HSBC, which is the Europe's largest by market value, is allegedly involved in transfer of funds through the US financial system that were linked to Mexican drug cartels and nations like Iran that are currently facing international sanctions. The bank will pay $1.25 billion in forfeiture and paying $655 million in civil penalties to settle the investigations.

Stuart Gulliver, Group Chief Executive of HSBC said in a statement today that, "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again."

The bank also said that it has reached an agreement over investigations of other government organizations in the US. The bank is being accused of violating the Bank Secrecy Act and the Trading With the Enemy Act under a deferred prosecution agreement. The $1.25 billion figure is the largest forfeiture figure recorded for a bank in the country.

The bank is also expected to enter into a similar agreement with the UK authorities following investigations in that country.