Hsbc Deferred Prosecution Agreement Doj

LONDON (Reuters) – HSBC HSBA. L on Monday ended his sentence for breaches in anti-money laundering controls and said the U.S. Department of Justice (DoJ) would end its agreement on deferred prosecutions and cancel the threat of new sentences. The Justice Department considered filing a lawsuit against HSBC in connection with its behavior at its exchange counter after two employees were accused of wrongfully acting, Bloomberg News reported last year, raising questions about the possibility that this investigation could jeopardize the deferred prosecution deal. In a July 31 application, the Bank said it was merely discussing the monetary issue with the Justice Department. According to HSBC`s confession, on two different occasions in 2010 and 2011, traders abused confidential information provided by customers who had instructed HSBC to carry out multi-billion euro foreign exchange transactions with the participation of the British pound sterling. After entering into confidentiality agreements with its customers, which required the bank to keep confidential the details of its planned transactions, traders at HSBC`s sterling exchange counter acted for the benefit of the traders and hsbc for their own profit on their « proprietary » HSBC accounts. HSBC traders then ensured that large transactions were made in a way that should steer the price of the pound in a direction that benefited HSBC and hurts its customers. HSBC also misrepresented one of the customers, Cairn Energy, to hide the selfish nature of its actions. In total, HSBC admitted to having made a profit of approximately $US 38.4 million in the first transaction in March 2010 and approximately $US 8 million in the Cairn Energy transaction in December 2011.

In accordance with the provisions of the DPA, HSBC Switzerland will cooperate fully with the tax department and the IRS. The DPA also requires HSBC Switzerland to disclose information it may later disclose regarding linked accounts in the United States, as well as information consistent with the department`s Swiss banking program regarding accounts closed between January 1, 2009 and December 31, 2017. According to the DPA, the prosecution of the bank for conspiracy is initially postponed for three years to allow HSBC Switzerland to prove its good behavior. .