Mexico Fines HSBC $27M Over Money Laundering Reporting

Law360, New York (July 25, 2012, 2:34 PM EDT) -- HSBC Mexico was fined $27.5 million on Wednesday for failing to maintain adequate money-laundering controls and to properly report more than 1,700 suspicious transactions, some of which likely helped drug cartels conceal the sources of their money, according to U.S. and Mexican authorities.

The punishment, levied by Mexico’s National Banking and Securities Commission, came a week after HSBC Mexico and its parent, HSBC Holdings PLC, were criticized in a blistering U.S. Senate report for a widespread failure to prevent money laundering.

“HSBC Mexico apologizes for its...
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