Creating and distributing additional copies is prohibited without the permission of the publisher. Contact

Money laundering: The turn of the screw

Jan 1, 2013

Banks are scrambling to tighten controls as US agencies step up their efforts against money laundering. The knock-on effects of new legislation could have a profound impact on the face of Latin banking

By Ivan Castano

December 11, 2012 is a date that HSBC shareholders are unlikely to forget soon. That day, the bank agreed to pay a record $1.92 billion to settle US government fines and forfeitures for money laundering. It was the largest US penalty ever imposed on a bank.

It followed a US Senate investigation which had revealed in July that the bank had transferred $7 billion from Mexican drug cartels - as well as more funds from nations penalized by US sanctions, most notably Iran - into the US. The result of the fine has been a scramble by Latin American banks to strengthen their money laundering safeguards.

"If LatAm bank controls were not up to date then, you can bet they are now," says Mireya Lozano, a Mexico-City based consultant and member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). "No bank wants to see itself...

To continue reading please take a free trial, subscribe or login below.

Already have an account?


Subscribe now for unlimited access to all current and archive news, data and market analysis. 


Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

LatinFinance Events


Will ABS become more interesting for LatAm borrowers as US monetary policy normalizes?


Printing isn't available for this page.