HSBC FINED $28 MILLION FOR LAUNDERING DRUG MONEY OTHER BANKS UNDER INVESTIGATION

HSBC Mexico will pay a fine of $28 million for allegations of failures in detecting and reporting unusual transactions from drug cartels. HSBC is also nearing a settlement with the U.S. Justice Department for money laundering and tax evasion. Pro-Pblica reported that from 2006-2009 HSBC’s U.S. branch didn’t do any money laundering monitoring for transactions with HSBC banks in other countries. Mexico sends about $50 billion north to the U.S. every year. The Treasury DEpartment estimates that up to half of this amount can be connected to the drug trade. In 2010 Wachovia paid fines of $160 million to settle a DOJ probe that examined the bank’s Mexican transactions. Jeffrey Newman represents whistleblowers. His email is jeff@jeffnewmanlaw.com