HSBC to pay $1.9B to settle money laundering case
British bank HSBC has agreed to pay $1.9 billion to settle a New York based money-laundering probe.
The announcement was made Tuesday by Assistant Attorney General Lanny A. Breuer and U.S. Attorney Loretta A. Lynch in Brooklyn.
The Justice Department says HSBC violated the Bank Secrecy Act in connection with the laundering of money from narcotics traffickers in Mexico.
The government also alleges that HSBC intentionally allowed prohibited transactions with Iran, Libya, Sudan and Burma. And the bank also facilitated transactions with Cuba in violation of the Trading With the Enemy Act, according to the documents.
HSBC Chief Executive Stuart Gulliver says the bank accepts responsibility for past mistakes and is "profoundly sorry.
U.S. officials say at least $881 million in drug trafficking proceeds was laundered through HSBC Bank USA.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)