HSBC to pay $101.5m to resolve currency rigging probe

Published: Wilson Clark

On: Jan 2018

Reportedly, the HSBC has promised to pay $101.1m in order to settle an American criminal investigation into rigged currency transactions. The bank has agreed to admit its traders twice mistreat the confidential information offered to them by their clients for its own profit.

Europe’s biggest bank, HSBC observed one of its former bankers that convicted previous year in connection with the probe. An American jury found that Mark Johnson felt guilty of defrauding client Cairn energy in the year 2011’s currency trade.

The settlement of HSBC is created of a $63.1m as a criminal penalty & $38.4m in restitution a nameless corporate client. It had already settled with Cairn energy for $8m(approx).

It is also reported that being a part of American deal, the HSBC has entered into 3 year deferred prosecution agreement (DPA) along with the American department of justice.

HSBC likely to pay $101.5m to settle American probe

The DPA is pending a review by a United States of America court as it would allow HSBC to neglect criminal charges. The world’s infamous bank stated that it had already agreed to increase its compliance programme as well as internal controls to cooperate completely with regulatory & the enforcement authorities.

It’s not the first time that HSBC has been in the trouble with the American authorities. In the month of September, the American Federal Reserve fined HSBC $175m on the unsound practices in its foreign exchange business.

While, in the month of November, the banking giant admitted to pay $353m in order to french authorities to pay a long running investigation into the evasion of tax with the help of French clients.

The prosecutor office of the French financial claimed HSBC’s Swiss private banking unit has helped clients evade tax.