It has also reached agreement to achieve a resolution with all other US government agencies that have investigated its past conduct in this matter and has said it anticipates finalising a settlement with the FSA shortly.
Earlier this year, senior HSBC executives went before a US Senate committee to explain the failures that occured between 2004 and 2010 and a Senate report accused HSBC of leaving America's financial system exposed to exploitation by drug cartels and terrorist organisations as a result of its failure to comply with anti-money laundering laws.
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."
The Department of Justice has recognised HSBC's efforts to rectify the mistakes made:
"Management has made significant strides in improving 'tone from the top' and ensuring that a culture of compliance permeates the institution. The efforts of management have dramatically improved HSBC Bank USA's and HSBC Group's Bank Secrecy Act / Anti-Money Laundering and Office of Foreign Assets Control compliance programs."
