LONDON (Reuters) – HSBC HSBA. L ended his punishment on Monday for failures in the fight against money laundering and said the U.S. Department of Justice (DoJ) would end its agreement on deferred prosecutions and lift the threat of new penalties. The World Bank reached its third deferred lawsuit agreement with U.S. authorities on Tuesday. This time, she admitted to helping U.S. clients evade tax for more than 10 years. In addition to forfeiting $1,256 billion under the Deferred Criminal Prosecution Agreement (DPA) with the Department of Justice, HSBC also agreed to pay $665 million in civil penalties – $500 million to the Office of the Comptroller of the Currency (OCC) and $165 million to the Federal Reserve for violations of the AML program. The OCC fine also results in a $500 million civil fine from the Financial Crimes Enforcement Network (FinCEN).
The bank`s $375 million transaction agreement with OFAC is satisfied with the Department of Justice`s forfeiture. The UK Financial Services Authority (FSA) is pursuing a separate action. A generation ago, the Department of Justice rarely proposed deferred lawsuits on Wall Street and looking for savings and credit scammers. From 1992 to 2002, only eight of these go-and-Sin-no-more agreements were granted, according to the Corporate Prosecution Registry of Duke University and the University of Virginia. But prosecutors have become much more cautious when it comes to bringing companies to court after the large audit firm Arthur Andersen broke in, when she was accused of obstructing justice in the Enron probe. HSBC Private Bank (Switzerland) SA (HSBC Switzerland), a private bank based in Geneva, today entered into a Deferred Criminal Prosecution Agreement (DPA) with the Department of Justice in the U.S. District Court for the Southern District of Florida, announced Deputy Attorney General Stuart M. Goldberg of the Department of Taxation of the Department of Justice, U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan , and Chief Don Fort for Internal Service (IRS) Criminal Investigation. HSBC Switzerland has admitted conspiring with US taxpayers to defraud taxes, and as part of the deal, HSBC Switzerland will pay US$192.35 million in penalties.
As part of the deal, HSBC pledged to strengthen its sanctions and controls to combat money laundering. It has done so successfully and the DoJ will therefore file an application to dismiss the allegations deferred by the agreement, HSBC said. As requested by the data protection authority, HSBC has also committed to supporting enhanced obligations on AML and other compliance obligations, as well as structural changes in all of its global business activities to prevent a recurrence of the behaviour that led to these lawsuits.