US: HSBC Has Much to Do on Anti-Laundering Fixes Brett Wolf and Aruna Viswanatha - Thomson Reuters Foundation
go to original April 20, 2014

HSBC has made some progress in improving its anti-money laundering program as required by a 2012 deferred prosecution agreement with the U.S. Justice Department, but there remains "much work to be done," federal prosecutors said in a recent court filing.

The British bank paid nearly $2 billion in penalties in December 2012 to resolve charges that it failed to stop hundreds of millions of dollars in drug money from flowing through the bank from Mexico, and it promised to fix the problems.

The government had selected independent monitor and former New York prosecutor Michael Cherkasky to monitor HSBC's compliance with the agreement. The report describes Cherkasky's conclusions to date.

"Based on his Initial Review and subsequent conversations with the Bank, the Monitor believes that the leadership of HSBC Group is appropriately committed to addressing the Bank’s longstanding compliance deficiencies," the Justice Department said in the filing.

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