HSBC Says AML Probe has Cost $1.5 Billion — and Could Go Higher - Corruption Currents - WSJ


HSBC Holdings PLC said Monday that it made an additional $800 million provision over U.S. probes into money laundering at the bank on behalf of drug cartels, blacklisted banks and other suspicious groups.

The U.K. bank had already set aside $700 million, bringing the total to $1.5 billion — and HSBC warned Monday that “the final amount of the financial penalties could be higher, possibly significantly higher, than the amount accrued.”

HSBC apologized in July following a U.S. Senate subcommittee report that alleged some of HSBC’s global operations were used by money launderers and potential terrorist financiers. U.S. authorities are considering whether to bring criminal and civil charges against HSBC over the allegations.