Sen. Carl Levin, D-Mich., chairman of the Senate Permanent Subcommittee on Investigations, issued the following statement today on HSBC's announcement that it will pay $1.92 billion to settle claims related to its inadequate compliance with anti-money laundering and sanctions laws. In July, the subcommittee issued a report and held a hearing exposing how HSBC's lax money-laundering compliance led to illicit money flows involving rogue governments, drug cartels and terrorists.
"In an age of international terrorism, drug violence, and organized crime, stopping illicit money flows is a national security imperative. Global banks have global responsibilities to prevent participation in illicit or suspect transactions. The HSBC settlement sends a powerful wake-up call to multinational banks about the consequences of disregarding their anti-money laundering obligations. It also shows the value of congressional oversight in exposing wrongdoing and the ongoing need to hold banks accountable."