Report: Bank's Lax Control Led To Money Laundering

By: AP
By: AP

WASHINGTON (AP) -- A Senate investigation has found that Europe's largest bank had lax controls that allowed Mexican drug cartels to launder money through its U.S. operations for seven years.

The Senate Permanent Subcommittee on Investigations extensive report on HSBC Holdings PLC also says U.S. regulators knew that the bank had a poor system to detect problems but failed to take action.

The report also says some bank affiliates skirted U.S. government bans against financial transactions with Iran and other countries.

The panel is releasing the report ahead of a Tuesday hearing on the topic. HSBC says its executives will apologize for the lapses at the hearing and promise to fix the problems.

The U.S. Justice Department says it is conducting a criminal investigation into HSBC's operations.


You must be logged in to post comments.

Username:
Password (case sensitive):
Remember Me:
KKTV 520 E. Colorado Colorado Springs, CO 80903 Office: (719) 634-2844 Fax: (719) 632-0808 News Fax: (719) 634-3741
Copyright © 2002-2016 - Designed by Gray Digital Media - Powered by Clickability 162644766 - kktv.com/a?a=162644766
Gray Television, Inc.