HSBC shares slip as bank pays money laundering fines

<p>Shares in HSBC have slipped as the bank is due to pay record money laundering penalties.</p>

Shares in HSBC have dropped in London today (December 11th), after the bank stated it will pay $1.9 billion (£1.2 billion) to settle a money laundering investigation by the US state and federal authorities.

The probe concentrated on the transfer of billions of dollars on behalf of nations such as Iran, which are under international sanctions, as well as the transfer of funds through the US financial system from Mexican drug cartels.

HSBC – which is Europe's largest bank in terms of market value – will pay $1.25 billion in forfeiture and $655 million in civil penalties.

The $1.25 billion fine is the largest ever seen in a case involving a financial institution and under a deferred prosecution agreement, HSBC will be accused of violating the Bank Secrecy Act and the Trading with the Enemy Act.

At 09:45 GMT on the London Stock Exchange, HSBC shares retreated by 0.2 per cent to 639.40p per unit.

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