The big bank had breached anti-money laundering regulations
Photo: Bloomberg LP
After ten years, the US Federal Reserve (Fed) has lifted anti-money laundering measures at the major bank HSBC Holdings. According to the Fed, the enforcement order against Europe’s largest financial institution ended on August 26.
“Over the past decade, HSBC has worked hard to transform the bank’s risk management capabilities,” the lender said in a statement quoted by DPA.
In 2012, the US Department of Justice accused the bank of becoming the preferred financial company of Mexican and Colombian drug cartels and other criminals. HSBC admitted it failed to prevent money laundering, paid a record fine of $1.92 billion and complied with orders to improve its business practices.
HSBC is not the only bank to have been heavily fined by US authorities for its flawed anti-money laundering systems. In 2020, Goldman Sachs paid a fine of $2.9 billion for his role in the corruption scandal involving the Malaysian sovereign wealth fund 1MDB.