On Monday, HSBC announced its deferred prosecution agreement with the US Department of Justice (DoJ) had expired, removing the threat of criminal prosecution for money laundering which had been hanging over the company for five years. From the Financial Times.
The US Department of Justice has given HSBC a major boost by seeking dismissal of the deferred criminal charges that have been hanging over the bank since it was fined for money laundering and sanctions breaches five years ago. The move by the DoJ lifts the threat of criminal prosecution that had been a ‘sword of Damocles’ hanging over London-headquartered HSBC, as its new management team looks to put its misconduct-plagued past behind it.
HSBC said the DoJ would file a motion with the US District Court for the Eastern District of New York seeking the dismissal of the charges deferred by the agreement it reached as part of a settlement with the bank in December 2012. The deferred prosecution agreement meant the DoJ could have reopened the criminal case against HSBC if the bank had been caught breaching the rules again during that period.
This post was published at Zero Hedge on Dec 11, 2017.