hsbc gets small fine for terrorist transactions

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Page 1: HSBC Gets Small Fine For Terrorist  Transactions

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GET POLITICS NEWSLETTERS:

 A major U.S. bank has agreed to a settlement for transferring funds on the behalf of 

financiers for the militant group Hezbollah, the Treasury Department announced on

Tuesday.

Concluding that HSBC's actions "were not the result of willful or reckless conduct,"

Treasury's Office of Foreign Assets Control accepted a $32,400 settlement from the

 bank . Treasury noted, as did HSBC in a statement to HuffPost, that the violations

 were voluntarily reported.

Everett Stern, a former HSBC compliance officer who complained to his supervisors

about the Hezbollah-linked transactions  told HuffPost he was "ecstatic and de ressed

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at the same time."

"Those are my transactions, I reported them," he said, satisfied that the government

 was taking action. But, he added, "Where I am upset was those were a handful of 

transactions, and I saw hundreds of m illions of dollars" being transferred.

Stern said he hopes the government's enforcement actions against HSBC have not

come to an end with the latest settlement. "They admit to financing terrorism and

they get fined $32,000. Where if I were to do that, I would go to jail for life," he said.

HSBC's fine is less than the $40,165.07 covered in the settlement agreement that the

 bank transferred between December 2010 and April 2011 on behalf of a development

company that Treasury says serves as a front for some of Hezbollah's biggest

financiers in Africa.

 And the government watchdog's claim that HSBC com mitted no "substantially 

similar apparent violations" in the past five years is likely to raise some eyebrows. I n

December 2012, the bank agreed to pay a $1.9 billion settlement for moving money that a 2012 Senate report found had likely helped drug cartels and a Saudi Arabian

 bank the CI A has linked to al Qaeda.

No one at HSBC was criminally charged for what U.S. Assistant Attorney General

Lanny Breuer called at the time "stunning failures of oversight." The Senate report

faulted the Office of the Comptroller of the Currency, an independent bureau with the

Treasury Department, for weak oversight of HSBC.

 A Treasury spokesman told HuffPost in an email that the Tuesday settlement "isunrelated to the bank’s December 2012 agreement with OFAC and other federal and

state government agencies, and does not involve the same pattern of conduct. This

action is similar to other settlements OFAC has reached with regard to apparent

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  . . .

HSBC spokesman Rob Sherman declined to comment on the similarities between the

 bank's earlier, much larger fine and the one announced on Tuesday. But he said the

 bank "took appropriate remedial action and we now have a more robust compliance

program in place."

Sherman declined to respond to Stern's claims about larger transactions, stating in an

email that he had "No comment on matters related to current or former employees."

This article has been updated to include comment from a Treasury spokesman and 

 from form er HSBC compliance officer Everett Stern.

CORRECTION:  An earlier version of this article mistakenly stated that a 2012

 Senate report on HSBC faulted the Office of Foreign Assets Control for weak

oversight of the bank, when in fact that report faulted the Office of the Comptroller

of the Currency.

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10 people are discussing this article with 10 comments

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Heidi H. (heididh)SUPER USER · 194 Fans

 Affluenza strikes again!20 DEC 6:04 AM

REPLY FAVE MORE

Norma Todd (toddnjean)SUPER USER · 344 Fans

To big to fine too large but let that be some average Joe and they would lose

everything they owned.

19 DEC 8:56 AM

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Pablito Garcia (Pablito_Garcia) 3

246 Fans

The only thing that is amazing here is that the US thinks it's personal biases against

the democratically elected Hezbollah should be reflected in a totally NON-CRIMINAL

banking transaction.

There's SO many reasons to object to the banks (mostly the big ones)...but this is

NOT one of them.19 DEC 5:33 AM

REPLY FAVE MORE

AtlantaBlue

133 Fans

 Amazing that nobody has gone to jail. $32K is lunch money to HSBC. Great job, AG

Holder.19 DEC 5:02 AM

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Peterson M. (onePERSONoneVOTE) 2860 Fans · We The People

The untouchables.18 DEC 5:57 PM

REPLY FAVE MORE

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James J. (youngandthinking)SUPER USER · 1,500 Fans · Hi

2nd strike,. 3rd and they should face heavy consequences18 DEC 5:35 PM

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Rip Barqfart (OutAtFirst) 3

964 Fans · Mountain goat, desert rat and sea dog

Well OK, but at least we've got the NSA busy spying on Brazilian oil companies and

the Chancellor of Germany.18 DEC 5:21 PM

REPLY FAVE MORE

Richard F. (rfinkels) 6

SUPER USER · 321 Fans

I guess the bank is another victim of Affluenza requiring diminished responsibility.18 DEC 2:04 PM

REPLY FAVE MORE

Pablito Garcia (Pablito_Garcia)246 Fans

What's irresponsible is the idea that America's personal biases should prevent a

democratically elected government from conducting banking transactions.19 DEC 5:34 AM

REPLY FAVE MORE

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JJ Coker (Jj_Coker) 4

SUPER USER · 402 Fans · Weltschmerz

"Failure of oversight", the new term for the government sanction criminal activities

of the banks. Seems these corporate entities are able to commit all these crimes

without people being involved. I wonder how they do that.

18 DEC 1:34 PM

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