HSBC fined record amount for ‘stunning failures of oversight’
12 Dec, 2012
Global bank accused of failing to prevent money laundering
U.S. prosecutors have said that HSBC is guilty of a ‘blatant failure’ to prevent money laundering, and as such allowed hundreds of thousands of dollars to be daily deposited into the bank by Mexican drug traffickers.
As a result, the bank has been fined a record amount of $1.9billion and the bank’s chief executive, Stuart Gulliver, has apologised saying he was ‘profoundly sorry’ for the lack of control. According to The Guardian, he said: “We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again.”
According to The Guardian, assistant attorney general Lanny Breuer told a New York press conference that ‘HSBC is being held accountable for stunning failures of oversight – and worse, that led the bank to permit narcotics traffickers and others to launder hundreds of millions of dollars through HSBC subsidiaries and to facilitate hundreds of millions more in transactions with sanctioned countries’.