UK banks hit with record $2.5bn US fines

HSBC and Standard Chartered have agreed record settlements over money laundering allegations as the former agrees to pay $1.9bn to US regulators.

HSBC, which had been alleged to have helped launder money belonging to drug cartels and countries under US sanctions, will pay a total of $1.92bn to settle US investigations and anticipates making a separate settlement with the FSA "shortly". The UK-listed bank came under fire in a US Senate report in July, and subsequently set aside $1.5bn in reserves to cover any agreement with US regulators. UK peer Standard Chartered has also confirmed it has reached a final settlement with the US Office of Foreign Assets Control regarding accusations it breached US sanctions with Iran. The ba...