HSBC money laundering settlement (2012)
HSBC paid $1.92 billion to settle charges that it laundered drug money for Mexican cartels and moved funds for sanctioned countries including Iran. The deferred prosecution agreement was the largest such penalty at the time.
HSBC admitted failures and stayed in business under a five-year monitorship rather than facing criminal prosecution.
The case established that mega-banks could pay billions and survive, setting expectations for how regulators handle large institutions.
The Bank of America penalty uses the same enforcement machinery that produced the HSBC settlement, and is now the third-largest Treasury penalty ever.
