How Money Gets Laundered

HSBC let hundreds of millions of dollars of drug cartel money come through its banks with minimal checks. This is David S. Cohen from the U.S. Treasury explaining how it worked:

“Despite the well-known illicit finance risks associated with Mexican drug trafficking organizations, HSBC inexplicably placed Mexico in its lowest possible risk category … As a result, it allowed billions in wire transactions and bulk cash to pass through its gates with minimal if any monitoring.”

HSBC is paying $1.9 BILLION in fines and will not be prosecuted. Here’s why according to Lanny Breuer, from the U.S. Justice Department’s criminal division:

“The decision not to prosecute HSBC was a decision of the Justice Department and was influenced by factors including the impact of the probe on the company’s employees and the potential economic effect.”

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2 Comments / Post A Comment

josefinastrummer (#1,850)

“I can’t believe what a bunch of nerds we are. We’re looking up money laundering in a dictionary.” Peter Gibbons

That’s all I can say about this because everything else would be inappropriate. Way to not do your job, Justice Department! Keep up the good work and make sure the higher ups at the bank get their Christmas bonuses! Whoop!

EvanDeSimone (#2,101)

So in essence “too big to fail” has now become “too big to be accountable under the law.” This sets a very bad precedent. I understand why the DoJ isn’t perusing the bank as a whole but there are definitely knowing and culpable employees who could and should be prosecuted.

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