We posted earlier today about HSBC’s agreement to enter into a deferred prosecution agreement with the DOJ, and its agreements with other agencies to resolve anti-money laundering charges. Since this morning, additional information explaining the components of the $1.92 billion payment has become available. In addition, USAToday has made available what appears to be at least part of the deferred prosecution agreement, which you can access here. The agreement details conduct relating to Mexico, Cuba, Iran, Libya, Sudan, Burma.
The DOJ has issued its own press release on the deferred prosecution agreement, providing additional details as to the amount of the forfeiture ($1.256 billion), which states:
In addition to forfeiting $1.256 billion as part of its deferred prosecution agreement (DPA) with the Department of Justice, HSBC has also agreed to pay $665 million in civil penalties – $500 million to the Office of the Comptroller of the Currency (OCC) and $165 million to the Federal Reserve – for its AML program violations. The OCC penalty also satisfies a $500 million civil penalty of the Financial Crimes Enforcement Network (FinCEN). The bank’s $375 million settlement agreement with OFAC is satisfied by the forfeiture to the Department of Justice. The United Kingdom’s Financial Services Authority (FSA) is pursuing a separate action.
The DOJ’s website also published remarks from Assistant Attorney General Lanny A. Breuer.
The $500 million in OCC penalties mentioned in the DOJ press release are discussed in the OCC’s press release, which contains links to the Consent and Desist Order, Consent Order for a Civil Money Penalty, and Formal Agreement Related to the Gramm-Leach Bliley Act. Similarly, the Federal Reserve issued a press release concerning the $165 million in penalties it assessed HSBC. (The Federal Reserve Order of Assessment and Cease and Desist Order were also made available).