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URL:  http://boards.fool.com/apparently-a-huge-bank-can-launder-billions-of-30430840.aspx

Subject:  Re: British banking giant HSBC will pay Date:  12/13/2012  5:25 PM
Author:  SuisseBear Number:  411237 of 544712

Apparently a huge bank can launder billions of dollars of drug money, face no criminal prosecution and a fine that is "small enough not to shut down the business."


Of course, if you happen to be a US bank doing the same thing, you get off even lighter:


Criminal proceedings were brought against Wachovia, though not against any individual, but the case never came to court. In March 2010, Wachovia settled the biggest action brought under the US bank secrecy act, through the US district court in Miami. Now that the year's "deferred prosecution" has expired, the bank is in effect in the clear. It paid federal authorities $110m in forfeiture, for allowing transactions later proved to be connected to drug smuggling, and incurred a $50m fine for failing to monitor cash used to ship 22 tons of cocaine.

More shocking, and more important, the bank was sanctioned for failing to apply the proper anti-laundering strictures to the transfer of $378.4bn – a sum equivalent to one-third of Mexico's gross national product – into dollar accounts from so-called casas de cambio (CDCs) in Mexico, currency exchange houses with which the bank did business.

"Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations," said Jeffrey Sloman, the federal prosecutor. Yet the total fine was less than 2% of the bank's $12.3bn profit for 2009. ...


http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-d...
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