After a review spanning some six months, HSBC’s $1.9 billion (£1.25 billion) DPA was signed off by District Judge John Gleeson in the face of severe and widespread criticism.
The DPA, in which HSBC does not admit guilt, relates to the laundering of billions of dollars for South American drugs cartels, over a lengthy period by the bank.
The fine which HSBC must pay is one of the highest ever, and whilst there are a number of stringent conditions attached, it is interesting to note that there was no admission of guilt contained within the DPA. The SEC, very recently, and for the first time in another case, insisted that a corporate admit guilt before the DPA could go ahead, and many observers felt that the US authorities were changing their attitude and insisting that such admissions would be a mandatory term of DPAs in the future.
