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NY Settlement Galvanized U.K. Resistance to HSBC Prosecution: Congressional Report

By Colby Adams and Valentina Pasquali

Federal officials balked at criminally charging HSBC Bank USA in 2012 over concerns that an indictment could harm the global economy and strain relations with the United Kingdom, Republican lawmakers said Monday. In a 282-page report, the House Financial Services Committee found that then-Attorney General Eric Holder overruled the recommendations of the U.S. Justice Department's Asset Forfeiture and Money Laundering Section (AFMLS) to prosecute the British bank for knowingly facilitating at least $1.5 billion in transactions linked to drug cartels and blacklisted entities. The bank, which in December 2012 paid various U.S. agencies a total $1.9 billion as part of...

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