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
Rain for the northwest, dry and cold elsewhere
Rejecting a showdown with Ed Miliband, David Cameron's terms sent to broadcasters reveal his deep dissatisfaction with the debate proposals.
The owners of what some people claim to be the 'Welsh Holy Grail' are offering a cash reward for the ancient artefact's safe return.