HSBC fined $27.5 million in Mexico over money laundering

Global banking giant HSBC has been fined $27.5 million by the Mexican government for failing to comply with the country's laws against money laundering, the highest ever fine imposed by Mexican regulators.

HSBC, Europe's largest bank, said it has paid the fine imposed by the National Banking and Securities Commission (CNBV).

CNBV imposed the fine on the London-based bank for non- compliance of anti-money laundering systems and controls, including reporting requirements with regard to unusual transactions, as well as other prudential regulations.

CNBV has alleged that HSBC Mexico reported 1,729 unusual transactions late to the regulator and did not report 39 unusual transactions besides 21 administrative failures.

"HSBC Mexico apologises for its failure strictly to comply with banking regulations, and acknowledges that in the past it has sometimes failed to meet the standards that regulators and customers expect," the bank said in a statement.

The fine comes at a time when the bank is facing a US Senate hearing on its using US branches as a gateway to the US financial system to transfer client's money around the world by deliberately ignoring US banking rules.