HSBC buoyed as ‘sword of Damocles’ lifts following US decision

Reprieve: HSBC had charges dismissed in the US giving a big boost to the bank

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Simon English, Financial Editor @SimonEngStand11 December 2017

HSBC got a boost on Monday when the US Department of Justice said it will dismiss criminal charges deferred since it was fined for money laundering five years ago.

The bank signed a five-year Deferred Prosecution Agreement in December 2012 which meant the department could have reopened the case had HSBC been caught again.

The department will now file a motion with the US District Court for the Eastern District of New York seeking the dismissal of the charges, effectively lifting a “sword of Damocles” over the bank.

HSBC said it “is pleased that the Department of Justice has recognised HSBC’s progress in strengthening its anti-money laundering and sanctions compliance capabilities over the past five years”.

Chief executive Stuart Gulliver said: “HSBC is able to combat financial crime much more effectively today as the result of the significant reforms.”

HSBC shares rose 14p, or 2%, to 748p.

They fell to 418p in April last year.