HSBC, a multinational banking & financial services holding firm, has stated that its five-year-old deferred- prosecution agreement (DPA) has ended on a positive note. According to the key officials of HSBC, the Justice department of the U.S. is contented with the Bank’s compliance system, which was severely examined after the bank was apparently involved in a money-laundering case in Mexico. Sources cite that the DOJ (Department of Justice) will seek the dismissal of all the cases against the multinational bank in the New York Court post recognizing that the bank has fulfilled its promises on anti-money laundering. Banking experts have forecast that the court ruling in favor of the multinational bank will be a shot in the arm for HSBC as well as the banking sector.
It has been reported that the banking activities of the British multinational bank have been constantly supervised since 2012 after it was found that the former had assisted Mexican drug Unions to launder money. The bank had been ordered to pay fines worth nearly USD 1.9 billion to U.S. authorities for indulging in such business malpractices. Furthermore, reliable sources had also claimed that the bank had established business relationships with clients in Iran, Cuba, Sudan, Libya, and Burma, thereby violating the sanction laws. Last year, Michael Cherkasky, a monitor of HSBC, was considering filing a criminal complaint against the bank with two of the staff members suspected over illegal trading activities. This act could have endangered the DPA pact, cite sources, however, the monitor finally refrained to act against the firm considering the interests as well as long-term effects of the complaint on the bank.
In recent years, HSBC has built up its compliance manpower tallying over six thousand personnel globally as per the requirements of the monitor. The end of the DPA deal and proactive measures initiated by the bank are thus expected to help restore the credibility and customer faith in HSBC.