The reputation of the worldwide banking industry suffered a new blow yesterday with revelations of banks' involvement in money-laundering and terrorism financing, and reports of new rate-rigging charges.The Financial Times reported yesterday that HSBC would pay US$1.92 billion (A$1.83 billion) in US fines over accusations that "it allowed itself to be used by money launderers in Mexico and terrorist financiers in the Middle East."The bank would also enter a deferred-prosecution agreement with US authorities, the Financial Times said. AP later reported that the bank would be charged with violating the US Bank Secrecy Act and the Trading with the Enemy Act.It reported allegations that the bank moved billions of dollars from Mexico to the US despite concerns that "such sums could only involve proceeds from illegal narcotics." The newspaper reported earlier this year that HSBC's senior manager of group compliance had labelled the bank's Mexican unit "the School of Low Expectations Banking."The Financial Times quoted HSBC's chief executive, Stuart Gulliver, as saying: "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."Meanwhile, Standard Chartered agreed on Monday to pay another US$327 million (A$312 million) to the US government to settle claims it impeded government inquiries and may have violated sanctions against Iran, Myanmar, Libya and Sudan, the Financial Times reported. Standard Chartered had already agreed to pay US$340 million (A$324 million) to New York state authorities.At the same time as the HSBC breach was coming to light yesterday, the Wall Street Journal claimed that European Union regulators were investigating at least a dozen banks over manipulation of the euro interbank offered rate, or Euribor. The newspaper said Barclays had already confessed to trying to rig the rate.Credit Agricole, Societe Generale, Deutsche Bank and HSBC were all named as being investigated.The latest claims come less than six months after revelations that Barclays was systematically rigging Libor, the London interbank offered rate that is the benchmark rate for banks borrowing from each other.The money-laundering and terrorism finance fines will have little financial impact on either HSBC or Standard Chartered; the Financial Times' Lex column described them as "a rap on the knuckles" and noted both banks had put aside reserves to pay the fines. But, as banks in Australia and around the world struggle to boost their public standing, the latest revelations of misbehaviour will only make their task harder.Triple T Consulting's Sean Keane noted in his client circular that the scandals would not impact on markets directly. But, he went on: "Both of them further weaken the negotiating hand of the banking industry in pushing back against the wave of regulatory reform that continues to sweep across the markets."It also guarantees that the political advantage that accrues to those who 'go after' the banks will continue to ensure that politicians everywhere will seize the opportunity to punish the industry further."