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HSBC announces end to deferred sentence in Mexican cartel money laundering case

December 12, 2017  |  Posted by: Francesca Falzarano
HSBC announces end to deferred sentence in Mexican cartel money laundering case

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On Monday, HSBC said its deferred prosecution deal with the U.S. Department of Justice has expired, indicating an end to the threat of additional punishment for “mistakes” in its anti-money laundering policies or lack of thereof.

In 2012, HSBC admitted having inadequate money laundering controls and signed a deferred prosecution agreement (DPA) – a form of probation – with the US Department of Justice, avoiding criminal charges

HSBC said it has lived up to its responsibilities under the five-year agreement under which it pledged to strengthen its sanctions and anti-money laundering controls.

Europe’s largest bank agreed paid a $1.9 billion penalty for failing to stop Mexican cartels from laundering hundreds of millions of dollars through the bank.

According to the BBC,  banking institution was also accused of managing transactions for countries sanctioned by the U.S. including Iran, Sudan, and Libya.

As part of the plea deal, HSBC also agreed to have an independent compliance monitor to evaluate and present the U.S. government annual assessments of the effectiveness of the group’s sanctions compliance programme and anti-money laundering policies.

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