The U.S. government is likely to file criminal charges related to money-laundering against HSBC Holdings, the international banking giant said in its third-quarter financial report.
London-based HSBC, Europe’s largest bank, reported Monday that it set aside an additional $800 million to cover its liability in the case, bringing the total so far to $1.5 billion. The potential penalties could be “significantly higher," it said.
Banks have fallen under heightened scrutiny amid evidence they have been used to funnel funds to terrorists and process dirty money for drug lords. Previous money-laundering settlements involved Wachovia Corp. of Charlotte, N.C., and Britain’s Standard Charter, both of which agreed to pay multimillion-dollar amounts.
HSBC’s self-described liability of more than $1.5 billion dwarfs those civil cases, which did not include criminal charges.
— Staff and wire reports