To: average joe who wrote (38523 ) 7/2/2013 9:40:46 PM From: 2MAR$ Read Replies (1) | Respond to of 69300 Business As Not Unusual: HSBC's $1.9B settlement with the U.S. to resolve claims related to laundering drug cartel-related money has been approved by a federal judge, reports Bloomberg. Reference Link The bank, Europe ’s largest, agreed to pay a $1.25 billion forfeiture and $665 million in civil penalties under the settlement, prosecutors said in December. At a hearing that month, Gleeson told prosecutors there had been “publicized criticism” of the agreement, which lets the bank and management avoid further criminal proceedings over the charges. Continued Supervision Gleeson said he will continue supervising implementation of the deal, under which the bank agreed not to contest criminal charges of failing to maintain an effective anti-money-laundering program, failing to conduct due diligence, and violating the Trading With the Enemy Act and the International Emergency Economic Powers Act. Lack of proper controls allowed the Sinaloa drug cartel in Mexico and the Norte del Valle cartel in Colombia to move more than $881 million through HSBC’s U.S. unit from 2006 to 2010, the government alleged. The bank also reduced resources for its anti-money-laundering programs to “cut costs and increase profits,” the government said in court filings. Under a deferred prosecution agreement, the government allows a target to avoid charges by meeting certain conditions - - including the payment of fines or penalties -- and by committing to specific reforms. ‘Significant’ Terms In his order today, Gleeson called the terms of the HSBC agreement, including the forfeiture and the bank’s admission of wrongdoing, “significant.” “Indeed, taking into account the fact that a company cannot be imprisoned, it appears to me that much of what might have been accomplished by a criminal conviction has been agreed to in the DPA,” Gleeson wrote. HSBC spokesman Rob Sherman said in an e-mailed statement that the bank remains focused on implementing the conditions of the agreement. “Since 2011, we have taken extensive actions to put in place the highest standards to protect against current and emerging threats from financial crime,” Sherman said. “While we are making good progress, there is much more to do, and ensuring the highest standards wherever we do business is an ongoing process.” Christina B. Dugger, first assistant U.S. attorney in Brooklyn , declined to comment on Gleeson’s decision.