HSBC Holdings Plc, Europe's largest bank, agreed to pay $1.92billion to settle U.S. probes of money laundering in the largestsuch accord ever.

The settlement includes a deferred prosecution agreement withthe U.S. Department of Justice, the London-based bank said in ane-mailed statement today. HSBC also said it expects to complete anundertaking with the U.K.'s Financial Services Authority soon,without giving details.

Chief Executive Officer Stuart Gulliver's attempts to reducecosts and improve profitability have been hurt by the U.S. probesand by compensation claims from U.K. clients. A Senate committeesaid in July that lax oversight by top HSBC executives gaveterrorists and drug cartels access to the U.S. financial system.The settlement is the biggest reached in the U.S. over suchallegations, topping the $619 million in penalties paid in June bythe Netherlands' ING Groep NV.