(KCEN) -- British bank HSBC has agreed to pay billions to the U.S.
This settles a money laundering probe by U.S. federal and state authorities, according to a law enforcement official.
HSBC will reportedly pay 1.25 billion dollars in forfeiture and 655 million dollars in civil penalties.
The probe of the bank has focused on the transfer of billions of dollars on behalf of nations like Iran, which is under international sanctions, and Mexican drug gangs through the U.S. financial system.
The bank will admit to misconduct under a deferred prosecution arrangement.
One analyst thinks the agreement removes the uncertainty surrounding the bank that is Europe's largest based on market value.
Lyncean Holding Managing Director Francis Lun said, "It is quite a big amount, certainly. But it is smaller than what BP suffered at the hand of the U.S. government. It won't bankrupt the bank."
Deferred prosecution is a tactic often used by the Justice Department in cases involving large corporations.
