HSBC unit investigated by U.S. over money laundering

HSBC Holdings Plc, Europe's biggest bank, said a U.S. unit is under investigation by regulators and government agencies over possible violations of anti-money-laundering rules.

The HSBC USA division faces "ongoing examinations" by regulators at the Office of the Comptroller of the Currency and Federal Reserve Bank of Chicago and has had requests for information from the Justice Department, the London-based bank said in a regulatory filing on Aug. 2. Locally, HSBC has operations in Mettawa.

"It is likely we will be subject to some form of formal enforcement action concerning processes or governance," HSBC USA said in the filing. "We are unable at this time to determine the terms on which these matters will be resolved, the timing of any formal enforcement action, or the amount of fines or penalties, if any, that may be imposed."

"We take these matters very seriously and are working with the regulators and agencies to resolve them," a HSBC spokesman said. "We have taken some initial steps and are committed to high standards or risk management and compliance."