HSBC is set to pay a record US$1.92bn fine to settle a money laundering probe carried out by US prosecutors.

In a statement released this morning, HSBC Holdings admitted to a breakdown of controls and said it had reached a deferred-prosecution agreement with the US Department of Justice.

HSBC has also reached agreement to achieve a global resolution with all other US government agencies that have investigated HSBC's past conduct related to these issues and anticipates finalising an undertaking with the UK's Financial Services Authority shortly.

Stuart Gulliver, group chief executive, said: "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes. Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters.

"While we welcome the clarity that these agreements bring, ensuring the highest standards wherever we do business is an ongoing process. We are committed to protecting the integrity of the global financial system. To this end we will continue to work closely with governments and regulators around the world."

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