HSBC Holdings plc (LON:HSBA) is facing possible US prosecution over foreign exchange trading, reviving an earlier controversy, it emerged on Wednesday.
US authorities are considering filing a criminal charge against part of HSBC linked to conduct on its forex desk, news agency Bloomberg cited unidentified “people familiar with the matter” as saying.
Prosecutors have already charged two of the desk’s staffers with improper trading and are now questioning whether the bank’s response to it was adequate, according to Bloomberg.
It could land HSBC in hot water because it may be seen as breaking an earlier deal that allowed it to avoid prosecution over money-laundering allegations.
The group admitted the accusations, which involved helping Mexican drug cartels and doing business with Iran and others despite trade sanctions.
HSBC signed a so-called deferred prosecution agreement (DPA) at the time forcing it to improve internal controls and undergo external monitoring, although it still had to pay a US$1.9bn fine.
If prosecutors consider that HSBC has contravened that deal, they could revive action against the bank over the money-laundering claims.
The US Justice Department and HSBC declined to comment, although the bank said last year it was meeting its commitments under the DPA, Bloomberg reported.