HSBC Said To Be In Settlement Talks

HSBC, which is under investigation by U.S. regulators for laundering funds of sanctioned nations including Iran and Sudan, is in talks to settle the matter, two people with knowledge of the case said.

Bloomberg reports that the bank made a $700m provision in July for any U.S. fines after a Senate Committee found it had given terrorists and drug cartels access to the U.S. financial system. That sum might increase, CEO Stuart Gulliver has said.

An HSBC settlement regulators and the Manhattan District Attorney were aiming to conclude as early as September may have been slowed when New York’s banking superintendent accused Standard Chartered of laundering $250bn for Iran. Regulators had been talking with both banks about universal accords when Benjamin Lawsky on August 6th threatened to revoke Standard Chartered’s license. Deals with the London-based banks next month are still possible, said the people, who asked not to be identified because the investigations are confidential.

'This is an epidemic of banks willfully, consistently violating economic sanctions', Jimmy Gurule, a former undersecretary for enforcement at the U.S. Treasury, said of sanctioned-nation money laundering. 'It calls for more serious sanctions than a monetary fine for an individual bank that does nothing more than harm shareholders'.

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HSBC in Settlement Talks With U.S. Over Money Laundering