HSBC sets aside $800m to cover money laundering penalties – HSBC says investigations by US regulators will likely involve criminal charges. In its interim management statement for the third quarter of 2012, HSBC has revealed it has set aside an $800m (£500m) provision in relation to US anti-money laundering, Bank Secrecy Act and Office of Foreign Asset Control investigations.

In August this year, HSBC confirmed it was under investigation along with 10 other banks by US regulators for alleged tax avoidance by some American clients.

In its interim financial statement for the third quarter of 2012, HSBC said: “We are actively engaged in ongoing discussions with the relevant authorities regarding steps to achieve a resolution, including potential fines, penalties and forfeitures, although no agreement has yet been reached.

“The resolution of at least some of these matters is likely to involve the filing of corporate criminal as well as civil charges and the imposition of significant fines, penalties and/or monetary forfeitures.”

It added that although prosecution of criminal charges are often deferred via agreements between the regulators and the companies involved, the US authorities have “substantial discretion” and prior settlements provide no certainty as to how the regulator will respond.

http://www.ftadviser.com/2012/11/05/ifa-industry/product-providers/hsbc-sets-aside-m-to-cover-money-laundering-penalties-MMp9RWf2dDDotp7yqiu30H/article.html

http://www.ftadviser.com/2012/08/28/ifa-industry/product-providers/hsbc-hit-by-us-investigation-into-swiss-operations-ssXwFMNEvCaIew6kuVj0IJ/article.html