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.
More top news
Austria is set vote for its new president again - and possibly elect the first far-right head of state in Europe since World War Two.
Italians go to the polls in a referendum on Sunday which could spell the end of Matteo Renzi's reign as prime minister.
A thief who posed as a council worker snatched cash from an 86-year-old woman's pension book, the Met Police said.