HSBC Holdings Says U.S. Deferred Prosecution Agreement Has Expired

By Ian Walker Features Dow Jones Newswires

HSBC Holdings PLC (HSBA.LN) said Monday that its deferred prosecution agreement with the U.S. Department of Justice has expired, and that the Justice Department will file a motion with the U.S. District Court seeking dismissal of the charges deferred by the agreement.

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HSBC entered into a deferred prosecution agreement with the Justice Department on Dec. 11, 2012, under which it agreed to raise its anti-money-laundering standards and meet other conditions to exit from the DPA. The agreement was part of a settlement with U.S. authorities over allegations that it failed to spot money laundering by criminal gangs and to flag transactions with countries under economic sanctions.

HSBC admitted the wrongdoing.

HSBC said Monday that it is working to ensure that the reforms it has put in place are both effective and sustainable over the long-term. It added that given the increasing sophistication of criminal networks that seek to circumvent banks' controls, it intends for its program to evolve and improve further over time.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

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December 11, 2017 04:21 ET (09:21 GMT)