HSBC, Standard Chartered to Settle Money Laundering violations Out Of Court- STAN

HSBC Holdings plc (ADR) (NYSE:HBC) may be paying a hefty $1.8 billion fine to U.S government over allegations of staying aloof to questionable transactions that passed through its system. According to the bank the said dollar-clearing and money laundering transactions escaped its internal control system due to a “corrupt culture”.

 

A Senate committee ruled against the bank saying earlier in July saying lax controls over financial dealings exposed the U.S. financial system to money-laundering activities by terrorist organisations like Al-Quaida and Mexican drug cartels.

London-based Standard Parking Corporation (NASDAQ:STAN) may also concede to the settlement of about $330 million on charges of violating the Federal restrictions on its money clearing operations with restricted countries.The bank was being prosecuted by New York’s banking regulator for withholding information that identified it’s Iranian customers for money clearing operations.

Robert Sherman , HSBC Holdings plc (ADR) (NYSE:HBC) spokesman in New York denied any comments on the news saying “The nature of any discussions is confidential.” However people familiar with the proceedings disclosed that the company could reach a final agreement with the federal prosecutors by the end of next week. The company booked a $800 million provision to its $700 million reserve in respect of the said contingency last month.  The company estimate of the final settlement $1.5 billion was significantly higher.

Few sources with direct knowledge of the negotiation disclosed on conditions of anonymity, that all four of the U.S. Treasury’s Office of Foreign Assets Control, New York District Attorney’s office. The Justice Department and The Federal Reserve are involved in the settlement proceedings.

HSBC Holdings plc (ADR) (NYSE:HBC) were down 0.14% to $51.68. Standard Parking Corporation (NASDAQ:STAN)was down 0.84% to $22.39.

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Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss