HSBC Holdings Plc said its five-year-old deferred prosecution agreement with the Department of Justice has expired, signaling the U.S. is satisfied with the bank’s improvements to its compliance systems after it was ensnared in a money-laundering scandal in Mexico.
The Justice Department will file a motion with a court in the Eastern District of New York seeking the dismissal of charges after HSBC "lived up to all of its commitments" to improve its anti-money laundering and sanctions compliance capabilities, the London-based bank said in a statement Monday. Once dismissed, the bank can no longer be criminally prosecuted for the matter.