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HSBC to pay $101.5m to settle currency probe

HSBC has agreed to pay $101.5m (£73m) to settle a US criminal investigation into the rigging of currency transactions.

The case, brought against the UK-based bank by the Department of Justice in New York, centred on the activities of traders accused of using confidential information provided by clients to the benefit of the bank.

One former British employee, Mark Johnson, was convicted of fraud in October in connection with a $3.5bn currency transaction by Cairn Energy in which he was said to have deployed a tactic known as “front-running”.

Image: Mark Johnson has protested his innocence
He is awaiting sentencing while Cairn received an $8.1m payment from HSBC in settlement.
The agreement with HSBC, announced by the DoJ on Thursday night, is yet to be officially signed off by a judge.
But under the so-called deferred prosecution agreement, which means the bank avoids criminal charges so long as it abides by a series of terms, it will pay a $63.1m fine.
On top of that is a $38.4m payment in restitution to a corporate client.

That company was not identified by the DoJ.
The deal with HSBC is also dependent on the bank bolstering its internal controls.
HSBC said the fine reflected a 15% reduction that took into account the bank’s cooperation and “extensive remediation” efforts.
Europe’s largest bank is no stranger to US settlements.

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This deal was announced just a month after the conclusion of a five-year deferred prosecution agreement over its alleged dealings with money launderers including Mexican drug cartels and other activity in defiance of US sanctions.
It had to pay almost $2bn in that case.

Source: Sky

About Business Ideas UK

My name is Joel Bissitt. I have been an entrepreneur for 24 years and have run many small businesses across various sectors. For the last 10 years I have worked mainly within online media, franchising and small business start-ups.

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