HSBC is no longer under the threat of prosecution in the US over allegations of money laundering in Mexico.
Under a deferred prosecution agreement (DPA) was signed to avoid a form of probation with the U.S. justice Department in 2012, with a view to criminal charges for alleged money-laundering hundreds of millions for Mexican drug barons.
A U.S. probe of the bank said was a conduit for “drug kingpins and rogue nations”.
HSBC says the DPA is now expired.
Money laundering is the process of concealing the proceeds of crime so that the money can not be assigned to the misconduct.
According to the US probe, HSBC admitted that the poor money-laundering controls and apologized. The bank also paid the US authorities a record $1.9 bn (Â£1.42 bn) settlement.
The UK-based banking giant was also reportedly with the handling of transactions for countries under U.S. sanctions, such as Iran, Libya and Sudan.
The DPA was introduced, in order to avoid a prosecution, which, if it led to a prosecution, would have meant that the US government could not do more business with the bank.”Significant Reforms”
The agreement also saw the appointment of an “independent compliance monitor”, produced annual reviews of the effectiveness of the group’s anti-money laundering and sanctions compliance program.
The monitor was also in 2013, HSBC has served since July, the “Qualified Person” in accordance with a direction of the UK Financial Conduct Authority. The bank said the monitor would continue in this role for a period of time, to decide which of the FCA
In a statement, HSBC said that it had “lived up to all its commitments” and that the DOJ would make the request with the U.S. court action, the dismissal of the charges.
Chief executive Stuart Gulliver said: “HSBC is able in the fight against crime is much more effective today as the result of the fundamental reforms that we have implemented in the last five years.
“We are committed to doing our part to protect the integrity of the global financial system and the further improvement of our own ability and contributions, the partnerships we have established with the governments in this area remain a top priority for the Bank in 2018 and beyond.”