Friday 19 October 2018

HSBC to pay £73m to settle currency rigging probe

Europe’s biggest bank has entered a three-year deferred prosecution agreement with the US Department of Justice.

A sign outside an HSBC branch (PA)
A sign outside an HSBC branch (PA)

By Ben Woods, Press Association Chief City Correspondent

Banking giant HSBC will pay 101.5 million US dollars (£73 million) to US authorities to settle a criminal investigation into currency rigging.

Europe’s biggest bank has entered a three-year deferred prosecution agreement with the US Department of Justice (DoJ) in which it will stomach a 63.1 million US dollar (£45.4 million) fine and pay 38.4 million US dollars (£27.6 million) in restitution.

The outcome marks a 15% drop in the financial penalty facing the bank because it cooperated during the investigation.

In a statement HSBC said: “The conduct described in the agreement occurred in 2010 and 2011.

“Since then, HSBC has introduced a number of measures designed to make the control environment in its Global Markets business more robust.

“The DoJ recognises these extensive improvements, noting that HSBC has dedicated significant resources to strengthening its systems and controls.”

The move comes after HSBC reached settlements over its forex trading business with the Financial Conduct Authority and US Commodity Futures Trading Commission in November 2014.

HSBC reported a near five-fold rise in third-quarter profits in October, as it pushed forward with its cost-cutting programme and benefited from its pivot to Asia.

The lender said pre-tax profits rose to 4.6 billion dollars (£3.5 billion) in the three months to September 30, marking a 448% jump compared to 843 million (£642 million) during the same period last year.

Press Association

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