Politics 5 November 2012 Five questions answered on HSBC’s money laundering provisions Mexican drug money has passed through the bank. Sign up for our weekly email * Print HTML HSBC has announced it has put more money aside to deal with US money laundering fines. We answer five questions on HSBC’s money laundering provisions. How much more money has HSBC put aside? A further 4800 million (£500 million) to cover potential money laundering fines imposed by the US. It had previously put aside $700 million. Why does HSBC have to pay money laundering fines? Because a report by the US Senate said that Mexican drug money had almost certainly passed through HSBC. How much could these future fines cost HSBC? HSBC is currently in discussion with US authorities in regards to a final settlement in fines. However, it did tell the BBC the "final amount of the financial penalties could be higher, possibly significantly higher [than the $1.5bn already set aside]". The bank may also face corporate criminal charges, as well as civil penalties. In a statement released with its third quarter results the bank said: "While the prosecution of corporate criminal charges in these types of cases has most often been deferred through an agreement with the relevant authorities, the US authorities have substantial discretion, and prior settlements can provide no assurance as to how the US authorities will proceed in these matters." What about HSBC’s other finances? Pre-tax profits for HSBC were announced by the bank as $3.5bn from July to September, down $3.7bn from a year earlier. However, underlying profits for the quarter totaled $5bn, more than double the figure recorded for the same quarter a year ago. Is HSBC, like other banks in the UK, also embroiled in the PPI mis-selling scandal? Yes. This is also costing the bank significant sums of money. It has set aside a further £223m in the UK to pay for PPI compensation claims, taking its total provisions to £1.3bn and the total for the UK banking industry as a whole to almost £13bn. › Why brain-teasers don't work HSBC has put money aside to deal with laundering fines. Photograph: Getty Images Heidi Vella is a features writer for Nridigital.com Subscribe from just £1 per issue More Related articles Jeremy Corbyn has found a vulnerable spot on Theresa May and trade Politicians are worried that their pensions are destroying the planet. Is yours? Nap Store: Where did all these new mattress start-ups come from?