Mexico fines HSBC $28 million in money laundering investigation


Mexican regulators have levied a $28 million fine against the Mexico subsidiary of London-based HSBC bank for failing to prevent money laundering through accounts at the bank.

Mexico’s National Securities and Banking Commission said Wednesday that HSBC has paid the fines, equivalent to 379 million pesos, or about half of the subsidiary’s 2011 annual profits.

The commission, and a report by a U.S. senate investigative committee, found the bank failed to control suspicious flows of billions of dollars through its accounts and didn’t respond promptly after being warned about a huge swell in dollar cash transactions at the bank.

Guillermo Babatz, president of the banking commission, said that at its peak in the mid-2000s, HSBC had become the main shipper of dollar cash transfers from Mexico to the United States, accounting for about half of the total flow, even though it wasn’t then among the country’s largest banks.

Detailed news link:  click here

Link to the press release by Mexico’s National Banking and Securities Commission (in Spanish): click here