LONDON--HSBC Holdings PLC (HBC) said Tuesday it has reached
agreement with U.S. authorities in relation to investigations
regarding inadequate compliance with anti-money laundering and
sanctions laws and will make payments totaling 1.921 billion U.S.
dollars.
MAIN FACTS:
-HSBC will continue to cooperate fully with regulatory and law
enforcement authorities and take further action to strengthen its
compliance policies and procedures.
-Pact includes a deferred prosecution agreement, or DPA, with
the U.S. Department of Justice.
-HSBC has also reached agreement to achieve a global resolution
with all other U.S. government agencies that have investigated
HSBC's past conduct related to these issues1 and anticipates
finalizing an undertaking with the U.K. Financial Services
Authority shortly.
-Stuart Gulliver, Group Chief Executive, said: "We accept
responsibility for our past mistakes".
-In the past several years, the Board of HSBC Holdings has taken
decisive action to direct management to fix past shortcomings as
they have come to light.
-Since 2011, with new senior leadership teams in place at both
HSBC Group and HSBC North America, HSBC has taken extensive and
concerted steps to put in place the highest standards for the
future.
-Agreement notes that HSBC Bank USA and HSBC Group have
"provided valuable assistance to law enforcement."
-HSBC conducted multiple extensive internal investigations,
voluntarily made employees available for interviews, and collected,
analyzed and organized voluminous evidence and information.
-Shares closed Monday at 641 pence valuing the company at 118.02
billion pounds.
-Write to Ian Walker at ian.walker@dowjones.com