Federal and state authorities plan to announce a record $1.9 billion settlement with HSBC today, a major victory in the government’s broad crackdown on money laundering at banks.
The settlement with HSBC stems from accusations that the British banking giant transferred billions of dollars on behalf of sanctioned nations like Iran and enabled Mexican drug cartels to launder money through the U.S. financial system, according to officials briefed on the matter. The deal, which will force the bank to forfeit more than $1.2 billion and pay additional penalties, is the largest to emerge from an investigation that has spanned several years and involved multiple government agencies.
The settlement is expected to include a deal with the Manhattan district attorney’s office and a deferred prosecution agreement with the Justice Department, according the officials. The Treasury Department is also expected to join the settlement.