Corporate Money Laundering Prosecutions
Overview: Corporate Money Laundering
Money laundering involves disguising the origins of illegally obtained money to make it appear legitimate. Corporations can be involved either knowingly or through negligent compliance failures.
Legal Framework:
Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws require financial institutions and businesses to implement controls against money laundering.
18 U.S.C. § 1956 (Money Laundering Statute) criminalizes financial transactions involving proceeds from unlawful activities.
Prosecutions target companies and their executives for knowingly facilitating or failing to prevent money laundering.
1. United States v. HSBC Bank USA (2012)
Facts
HSBC, a major international bank, was found to have laundered money for drug cartels and allowed transactions from sanctioned countries.
Charges
Violations of the Bank Secrecy Act
Money laundering conspiracy
Outcome
HSBC pleaded guilty and paid a $1.9 billion fine.
Entered into a deferred prosecution agreement with the DOJ.
Significance
Highlighted vulnerabilities in large banks’ AML compliance.
Sent a warning to financial institutions on monitoring illicit funds.
2. United States v. Standard Chartered Bank (2012)
Facts
Standard Chartered was accused of laundering billions of dollars from Iran and violating sanctions.
Charges
Money laundering
Sanctions violations
Outcome
Paid $340 million in fines.
Entered into a non-prosecution agreement.
Significance
Emphasized risks banks face from international sanctions breaches.
Reinforced regulatory scrutiny on cross-border money flows.
3. United States v. ING Bank N.V. (2012)
Facts
ING Bank was charged with failure to maintain an effective AML program, facilitating money laundering for drug traffickers and terrorist financiers.
Charges
Violations of the Bank Secrecy Act and anti-money laundering laws.
Outcome
ING paid a $619 million penalty.
Committed to improving AML controls.
Significance
Demonstrated the importance of AML compliance beyond direct criminal intent.
Showed regulatory focus on systemic compliance failures.
4. United States v. Liberty Reserve (2013)
Facts
Liberty Reserve, a digital currency service, was accused of laundering more than $6 billion in criminal proceeds including fraud and identity theft.
Charges
Operating an unlicensed money transmitting business
Money laundering conspiracy
Outcome
Founder sentenced to 20 years in prison.
Service shut down by federal authorities.
Significance
First major crackdown on digital currency platforms used for laundering.
Set precedent for regulation and prosecution of crypto-related money laundering.
5. United States v. BNP Paribas (2014)
Facts
BNP Paribas, one of Europe’s largest banks, was charged with processing transactions involving Sudan, Iran, and Cuba, violating U.S. sanctions and laundering money.
Charges
Sanctions violations
Money laundering
Outcome
Paid a historic $8.9 billion fine.
Entered a deferred prosecution agreement.
Significance
Largest financial penalty at the time for AML and sanctions violations.
Reinforced U.S. extraterritorial reach in AML enforcement.
6. United States v. Wal-Mart de México (2012)
Facts
Allegations surfaced that Wal-Mart’s Mexican subsidiary engaged in bribery and facilitated money laundering to cover illicit payments.
Charges
Foreign Corrupt Practices Act (FCPA) violations (bribery linked to laundering proceeds)
Money laundering conspiracy
Outcome
Ongoing investigations and settlements with DOJ and SEC, including large fines.
Significance
Showed how corporate corruption and money laundering often overlap.
Highlighted due diligence risks in international operations.
Summary Table
| Case | Year | Corporate Entity | Charges | Outcome | Significance |
|---|---|---|---|---|---|
| HSBC Bank USA | 2012 | HSBC Bank | Money laundering, sanctions violations | $1.9B fine, deferred prosecution | Major bank AML failure exposed |
| Standard Chartered Bank | 2012 | Standard Chartered | Money laundering, sanctions violations | $340M fine, NPA | Highlighted sanctions risk |
| ING Bank N.V. | 2012 | ING Bank | AML program failures | $619M fine | Focus on compliance programs |
| Liberty Reserve | 2013 | Digital currency service | Money laundering conspiracy | Founder sentenced, shutdown | Crypto laundering crackdown |
| BNP Paribas | 2014 | BNP Paribas | Sanctions violations, money laundering | $8.9B fine, DPA | Largest AML penalty, extraterritorial reach |
| Wal-Mart de México | 2012 | Wal-Mart subsidiary | FCPA and money laundering | Settlements with DOJ/SEC | Intersection of bribery & laundering |
Conclusion
Corporate money laundering prosecutions reveal the wide scope of the issue—from traditional banks failing compliance to digital currency platforms and multinational corporations linked to bribery schemes. Enforcement has increasingly focused on both criminal penalties and structural reforms like enhanced AML programs.
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