HSBC Mexico pays $27.5 mn fine over laundering probe

British bank HSBC on Wednesday said its Mexico unit had paid a fine totalling 379 million Mexican pesos ($27.5 million) to Mexico’s banking regulator for breaching anti-money laundering controls.

“Grupo Financiero HSBC, S.A. de C.V. (HSBC Mexico) today paid a fine imposed by the National Banking and Securities Commission, amounting to MXN379m in connection with non-compliance with anti-money laundering systems and controls,” said a statement.

“The infringements related to the late reporting of 1,729 unusual transactions, the failure to report 39 unusual transactions, and 21 administrative failures,” HSBC said.

HSBC earlier this month apologised and a senior executive resigned after US lawmakers accused Europe’s biggest bank of giving Iran, terrorists and drug dealers access to America’s financial system.

In a 330-page report, the US Senate found the lender allowed affiliates in countries such as Mexico, Saudi Arabia and Bangladesh to move billions of dollars in suspect funds into the United States without adequate controls.

The report said HSBC’s Mexican affiliate “transported $7.0 billion in physical US dollars to HBUS from 2007 to 2008… raising red flags that the volume of dollars included proceeds from illegal drug sales in the United States.”