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.
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The beleaguered Labour Party leader is clinging onto power in the face of as many as 150 MPs voting to remove him from the top job today.
Mr Osborne said he is "not the person to provide the unity my party needs".