HSBC's £1.2bn laundering fine

HSBC will pay $1.9 billion (£1.2 billion) to settle a money-laundering probe by US federal and state authorities, the largest paid in such a case. A US Senate investigation said it had been a conduit for "drug kingpins and rogue nations".

Cameron: 'Bankers should feel full force of the law'

David Cameron has said he believes bankers should be held personally responsible for incidents such as money-laundering.

Following the announcement that HSBC is to pay £1.2 billion in a money-laundering probe by US authorities, the Prime Minister told the House of Commons Liaison Committee:

It is a very serious offence. We do have quite strict controls in this country in terms of how banking regulation and money-laundering regulation works.

I have always said, with respect to bankers, if they get it wrong, like anybody else, they should feel the full force of the law.

– David Cameron

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HSBC's measures to crackdown on money laundering

Unveiling the settlement, HSBC said that, in the past several years, the board had taken decisive action to direct management to "fix past shortcomings as they have come to light".

It included an increase in spending on anti-money laundering nine-fold between 2009 and 2011 and clawing back bonuses for a number of senior officers.

HSBC said it had also simplified its control structure, to allow the company to manage risks worldwide more effectively.

HSBC has reached agreement with several US authorities
HSBC has reached agreement with several US authorities Credit: Press Association

HSBC Chief: 'We accept responsibility for our past mistakes'

In a statement, HSBC group chief executive Stuart Gulliver said:

We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes.

Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters.

While we welcome the clarity that these agreements bring, ensuring the highest standards wherever we do business is an ongoing process.

We are committed to protecting the integrity of the global financial system. To this end we will continue to work closely with governments and regulators around the world.

– Stuart Gulliver, Group Chief Executive

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Official announcement expected on HSBC settlement

HSBC will pay $1.9 billion (£1.2 billion) to settle a money-laundering probe by US federal and state authorities, according to reports. Credit: PA Wire

A law enforcement offical said an announcement on the settlement could happen as early as Tuesday, according to the Associated Press.

The UK-based bank allegedly helped launder money from drug cartels and on behalf of nations under international sanctions.

HSBC previously admitted having poor money laundering controls following a US Senate investigation.