HSBC Holding plc has paid a penalty of about $27.5 million (Rs.154 crore) to Mexican regulators as the banking giant’s unit there failed to comply with the money-laundering rules.

HSBC Mexico said it paid a “fine imposed by the National Banking and Securities Commission (CNBV), amounting to MXN 379 million (about $27.5 million), in connection with non-compliance with anti-money laundering systems and controls, including reporting requirements with regard to unusual transactions, as well as other prudential regulations.”

The penalty was paid for the infringements related to the late reporting of 1,729 unusual transactions, the failure to report 39 unusual transactions, and 21 administrative failures, it said in a statement on Wednesday.

“HSBC Mexico apologises for its failure strictly to comply with banking regulations, and acknowledges that in the past it has sometimes failed to meet the standards that regulators and customers expect,” the bank said.

HSBC Mexico is one of the leading financial groups in Mexico with 1,066 branches.

More In: Business