Senator Elizabeth Warren (D-MA): Prosecute Banks That Launder Drug Money

by Colonel on March 7, 2013

“Elizabeth Warren on Thursday demanded answers from top banking regulators over the possibility of shuttering financial firms that flout federal anti-money laundering laws or violate international trade sanctions.

Referencing the penalties leveled against HSBC after the company was caught being used to funnel billions in drug money, the Massachusetts Democrat questioned regulators about why they did not consider forcing the British bank to shut its doors on U.S. soil.

Regulators fined the company $1.9 billion over the laundering, but Warren questioned why no criminal prosecutions were aimed at the company or its employees.

Officials from the Treasury Department, Federal Reserve and Office of the Comptroller of the Currency hesitated to weigh in on when it was appropriate to shut down financial firms, saying the decision to shutter a bank would follow prosecutions by the Department of Justice.

” — Patrick Reis, Copyright 2013 Politico LLC

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