HSBC fined for role in drug cartel money laundering - WMBFNews.com, Myrtle Beach/Florence SC, Weather

HSBC fined $1.9 billion for ignoring signs of drug cartel money laundering

(CNN) - Global banking giant HSBC says it will pay a record $1.9 billion dollars to settle U.S. allegations the bank ignored red flags pointing to money laundering for Mexican drug cartels and possible terrorists.

It's the biggest fine ever against a bank by the U.S. government.

A Senate report earlier this year claimed HSBC Mexico unit shipped $7 billion dollars in cash to its U.S. affiliates.

The money is believed to be tied to Mexican drug cartels and banks linked to terrorism.

HSBC says it accepts responsibility for its past mistakes.

As part of the agreement, the bank is required to take further actions to strengthen its compliance policies and procedures.

Despite the size of the fine, $2 billion won't cripple HSBC.

According to one analyst, the bank will earn back that much cash in just 41 days.

Copyright 2012 CNN. All rights reserved.

Powered by Frankly