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HSBC to pay $101.5m to settle currency rigging probe

From BBC - January 18, 2018

HSBC has agreed to pay $101.1m (72.7m) to settle a US criminal investigation into rigged currency transactions.

The bank has admitted its traders twice misused confidential information provided to them by clients for its own profit.

HSBC, which is Europe's biggest bank, saw one its former bankers convicted last year in connection with the probe.

A US jury found Mark Johnson guilty of defrauding client Cairn Energy in a 2011 currency trade.

Compliance promise

The HSBC settlement is made up of a $63.1m criminal penalty and $38.4m in restitution to an unnamed corporate client.

Separately it had already settled with Cairn Energy for approximately $8m.

As part of the US deal, HSBC has entered into a three-year deferred prosecution agreement (DPA) with the US Department of Justice.

The DPA, which would allow HSBC to avoid criminal charges, is pending a review by a US court.

The bank said it had agreed to boost its compliance programme and internal controls, as well as to cooperate fully with regulatory and law enforcement authorities.

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