Argentina slapped a 30 million peso ($6 million) fine on a local subsidiary of global banking giant HSBC for failing to report suspicious transactions, authorities here said Sunday.

Justice officials said that the fine had been levied against HSBC Bank Argentina SA for failing to disclose a three million dollar transaction by a bread bakers' association, in what regulatory officials said was a clear-cut case of money laundering.

Officials said the sum said should have raised red flags at HSBC, given the group's relatively modest "profile." "The amount of transactions investigated was a 5800 per cent higher than the amount of total income declared by the association for the years 2005 to 2006," the agency.

Just last week, officials in the United State found that HSBC's parent flouted US sanctions on Iran and other countries and laundered Mexican drug money to build its business, and hit it with a massive $1.92 billion in fines.

News: The Daily Sun/Bangladesh/18th-Dec-12