Another British Bank, HSBC, is now in settlement negotiations with U.S. bank regulators for alleged laundering of money for nations under sanction such as Iran and Sudan.
This is the second British bank in the past two weeks to go to settlement with U.S. regulators over allegations of money laundering with sanctioned countries such as Iran. Britain's Standard Chartered bank agreed on August 14, 2012 to pay over $340 million to settle a New York state banking matter that could have resulted in the mega-bank losing its New York license to do business.
HSBC is Europe's largest bank by market value. In July 2012, it made a $700 million provision for any U.S. fines for money laundering in the U.S. after a U.S. Senate Committee determined the bank had given Iranian and Sudanese terrorists and drug cartels access to the U.S. financial system. That $700 million provision may well increase depending upon the facts and circumstances.
[www.bloomberg.com/news/2012-08-24/hsbc-in-settlement-talks-with-us-over-moneylaundering; www.businessweek.com/news/2012-08-23/hsbc-outlook-cut-to-negative-by-s-and-p]
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