The Federal Reserve said it has levied a $165 million penalty against HSBC Holdings Plc as part of a $1.92 billion settlement announced yesterday.
The central bank said today in Washington that the “civil money penalty is the largest the Federal Reserve has assessed as a result of unsafe and unsound practices related to insufficient compliance with Bank Secrecy Act and anti-money laundering requirements, and U.S. economic sanctions.”
HSBC Holdings Plc, Europe’s largest bank, agreed to pay the funds to settle U.S. probes of money laundering in the largest such accord ever. The settlement includes a deferred prosecution agreement with the U.S. Department of Justice, the London-based bank said in an e-mailed statement yesterday. HSBC also said it expects to complete an undertaking with the U.K. Financial Services Authority soon, without giving details.
The Fed issued a cease and desist order that addresses inadequate oversight by HSBC of “anti-money laundering controls and U.S. dollar clearing practices used by the firm’s banking subsidiaries in the United States and abroad.”
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