HSBC Report Should Result in Prosecutions, Not Just Fines, Say CriticsSubmitted by Bob-45 on Sun, 02/24/2013 - 00:25
Jul 18, 2012 4:45 AM EDT
When a bank is found to be shockingly noncompliant in preventing money laundering, are monetary fines enough? Or should high-level employees be criminally liable? Jesse Singal reports.
Tuesday’s Senate hearing on HSBC is likely to add fuel to a debate that cuts to the core of recent criticisms of Wall Street: When a bank is found to be shockingly noncompliant in preventing money-laundering, are monetary fines enough? Or should high-level employees be criminally liable?
For some advocates of heightened enforcement, prosecuting individuals is the only clear-cut solution.
“I think we’re going to continue to see these types of gross violations of federal regulations intended to prevent money laundering until bank officials are held criminally accountable for their figures,” said Jimmy Gurulé, a Notre Dame law professor who as the Treasury Department’s under secretary of enforcement from 2001 to 2003 had oversight of the Financial Crimes Enforcement Network.