BUSI 472 Quiz Video Activity Money Laundering solutions complete answers

BUSI 472 Quiz Video Activity Money Laundering solutions complete answers 

 

The U.S. government ordered British Bank HSBC Holdings to strengthen its anti-money laundering practices after the financial institution was caught laundering more than 800 million dollars for Mexican drug cartels. The investigation of HSBC found that the bank covered up illegal transactions for Burma, Iran, Sudan, Cuba, and Libya—countries existing under banking sanctions due to human rights violations, terrorism, and nuclear programs. For a settlement, the bank had to pay $1.9 billion to the U.S. government—the largest fine in history. Although HSBC has anti-corruption programs in place, the bank worked with known drug cartels and helped other banks hide illegal transactions. In response, the U.S. government fined the company and set up a five-year monitoring program to oversee the company’s transactions.

Money Laundering Part 1

 

Under pressure from U.S. regulators, HSBC Bank admitted that it was guilty of this category of ethics violations:

 

In Western society, the stakeholder group responsible for policing HSBC Bank’s unethical activities is:

 

Which of the following activities in the clip is related to the government’s regulatory role in reining in ethics violations?

 

The U.S. government ordered British Bank HSBC Holdings to strengthen its anti-money laundering practices after the financial institution was caught laundering more than 800 million dollars for Mexican drug cartels. The investigation of HSBC found that the bank covered up illegal transactions for Burma, Iran, Sudan, Cuba, and Libya—countries existing under banking sanctions due to human rights violations, terrorism, and nuclear programs. For a settlement, the bank had to pay $1.9 billion to the U.S. government—the largest fine in history. Although HSBC has anti-corruption programs in place, the bank worked with known drug cartels and helped other banks hide illegal transactions. In response, the U.S. government fined the company and set up a five-year monitoring program to oversee the company’s transactions.

Money Laundering Part 2

 

Which of the following ethics failures at HSBC is most likely an illegal activity regulated by governments?

 

In the U.S., the following agency would be responsible to investigate HSBC’s money laundering and accounting cover-ups:

 

In this clip, the U.S. government expects HSBC to comply with its regulatory oversight. What mechanism does the government have for ensuring compliance?

 

While the government's steep fine and ongoing oversight of HSBC may prevent future fraud and financial misconduct, it may also produce the following unintended consequence:

 

The U.S. government ordered British Bank HSBC Holdings to strengthen its anti-money laundering practices after the financial institution was caught laundering more than 800 million dollars for Mexican drug cartels. The investigation of HSBC found that the bank covered up illegal transactions for Burma, Iran, Sudan, Cuba, and Libya—countries existing under banking sanctions due to human rights violations, terrorism, and nuclear programs. For a settlement, the bank had to pay $1.9 billion to the U.S. government—the largest fine in history. Although HSBC has anti-corruption programs in place, the bank worked with known drug cartels and helped other banks hide illegal transactions. In response, the U.S. government fined the company and set up a five-year monitoring program to oversee the company’s transactions.

Money Laundering Part 3

 

This clip expresses a concern that companies that break the law may not have to face:

 

This clip raises the following ongoing debate about business ethics:

 

Why would prosecuting individual bank officials at HSBC be highly controversial?