Mexican regulators have imposed a fine of $28 million on the Mexico subsidiary of HSBC bank for failing to comply with anti-money laundering regulations. The fine is equivalent to approximately half of the subsidiary's 2011 annual profit.

Mexico's National Banking and Securities Commission (CNBV) found that the bank failed to control suspicious flows of billions of dollars through its accounts and did not respond promptly to warnings of huge increases in suspicious transactions at the bank detected by regulators.

HSBC Mexico acknowledged in a statement that it failed to report 39 suspicious transactions and had been late in reporting 1,729 others.

To access the CNBV press release (in Spanish), click here.