Step 11 , MQ_Chapter03-08 This clip expresses a concern that companies that break the law may not have to face: O a. Firings O b. Fines C. New regulatory burdens d. Criminal prosecution of managers The U.S. government ordered British Bank HSBC Holdings to strengthen its anti-money laundering practices after the financial institution was caught laundering more than 800 million dollars for Mexican drug cartels. The investigation of HSBC found that the bank covered up illegal transactions for Burma, Iran, Sudan, Cuba, and Libya-countries existing under banking sanctions due to human rights violations, terrorism, and nuclear programs. For a settlement, the bank had to pay $1.9 billion to the U.S. government-the largest fine in history. Although HSBC has anti-corruption programs in place, the bank worked with known drug cartels and helped other banks hide illegal transactions. In response, the U.S. government fined the company and set up a five-year monitoring program to oversee the company's transactions. Money Laundering Part 3 7295864/video/738532_121211e_hsbc_money_laundering_ferrell_3.txt >> Today's settlement nobody at HSBC will face criminal charges. Notre Dame professor Jimmy Gurule investigated money laundering cases for the Treasury Department. >> We're not talking about mere negligence. We're talking about a criminal scheme that was adopted as a policy of HSBC to look the other way with regard to suspicious transactions involving money laundering. >> Some would say that the message is if you break all the laws you can until you get caught you may have to pay a lot of money but you're not going to go to jail. >> That's a very short sighted view I think. Because in this case they're obviously paying a great deal of money, but they also have had to literally turn their company inside out. And the message should be that that's what you have to do. >> So turn their company inside out. In a statement from its London headquarters HSBC said it has cleaned house, firing top executives, taking back their bonuses. Now the bank has to demonstrate to a federal monitor that they're in compliance with all laws for five years. Scott? >> Well, John, with all of this apparent evidence why didn't the Department of Justice press a criminal prosecution on the money laundering charges? >> Well, that's a question we kept asking today. And the closest we got to it was they said that they never found one bank official or any collection of bank officials acting together that were doing this on purpose. They painted a picture of a disorganized bank not communicating with itself that was collecting all of these fees and either not knowing or not wanting to know where it was all coming from