Source: HSBC to pay $1.9 billion in probe

HSBC, the British banking giant, will pay $1.9 billion to settle a money-laundering probe by federal and state authorities in the United States, a law enforcement official said Monday.

The probe of the bank — Europe’s largest by market value — has focused on the transfer of billions of dollars on behalf of nations including Iran, which are under international sanctions, and the transfer of money through the U.S. financial system from Mexican drug cartels.

According to the official, HSBC will pay $1.25 billion in forfeiture and pay $655 million in civil penalties. The $1.25 billion figure is the largest forfeiture ever in a bank case.

The official spoke on condition of anonymity because the source was not authorized to speak on the record.