DHAKA: The US says "dangerous practices" at HSBC allowed the bank to pass money to "drug kingpins and rogue nations", fining it $1.9bn (£1.2bn).
HSBC agreed the fine, the largest of its kind, earlier on Tuesday.
A US Senate investigation said the UK-based bank had been a conduit for drug barons and nations such as Iran against which it had sanctions, making it illegal to do business there.
HSBC admitted having poor money laundering controls and apologised.
Money laundering is the process of disguising the proceeds of crime so that the money cannot be linked to the wrongdoing.
US Assistant Attorney General Lanny Breuer said in a statement: "HSBC is being held accountable for stunning failures of oversight - and worse - that led the bank to permit narcotics traffickers and others to launder hundreds of millions of dollars through HSBC subsidiaries.
Another official said it was implicated in "wilful and dangerous" practices.
Source: BBC
BDST: 0230 HRS, DEC 12, 2012
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