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El Chapo Guzman May Still Be Banking With HSBC

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Remember that time HSBC was found to be running a lucrative money-laundering business on the side, cheerfully doing business with Mexican and Colombian drug cartels, the Iranians, Burmese and the Cubans? And how it agreed to stop and be a good boy and oh yea pay about $2 billion if federal prosecutors agreed not to file criminal charges against it?

Well, coming up with $1.9 billion was the easy part. Making sure you’re not doing the thing that forced you to write that check in the first place? This is a stickier matter.

HSBC Holdings Plc has “much work” to do as part of a $1.9 billion agreement with the Justice Department to avoid prosecution for money laundering, the U.S. said in a status report on the U.K.-based bank’s performance.

HSBC must reach an accord this month on a monitor’s recommendations for improving its anti-money laundering and sanctions compliance programs, the government said in a filing today in federal court in Brooklyn, New York. The bank is handling the matter in “good faith,” the U.S. said...

The monitor found that HSBC needs to improve the reliability of the data it gathers on its customers and improve methods of sharing the data with affiliates, the U.S. said.

Cherkasky, a former chief executive officer of the security and investigative company Altegrity Inc., also found that HSBC’s information technology and transaction monitoring systems “lack integration, coordination and standardization,” the U.S. said.

HSBC Faces ‘Much Work’ in Money-Laundering Accord, U.S. Says [Bloomberg]


By Formulax at zh.wikipedia (Transferred from zh.wikipedia) [CC BY-SA 1.0, GFDL or CC-BY-SA-3.0], from Wikimedia Commons

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