In accordance to the agreement with the Justice Department, HSBC has agreed to pay a criminal penalty of $63.1 million.
John Cronan, acting assistant attorney general at the U.S. Justice Department, said the bank misused confidential client information for its own profit on more than one occasion.
Under the terms of the agreement, which is under review by a federal judge in Brooklyn, HSBC will pay a $63.1 million fine and an additional $38.4 million in restitution and disgorgement - or the return of ill-gotten gains, the Justice Department said.
The DoJ's investigation concerned the misuse of confidential information provided to the bank by clients for its own profit in 2010 and 2011.
United States officials only identified one of the two clients: the British oil and gas explorer Cairn Energy. It was also alleged that HSBC made misrepresentations to one client, Cairn Energy, to hide the self-serving nature of the trades.
That company was not identified by the DoJ.
Banking giant HSBC is to pay more than $100m to settle a U.S. currency-rigging case being brought by the Department of Justice (DoJ).
One of the ex-bankers involved, Mark Johnson, has already been found guilty of conspiracy and wire fraud.
The settlement follows an indictment handed down Wednesday against a former Barclays trader similarly accused of defrauding the former California computing giant Hewlett-Packard by manipulating foreign exchange markets. The bank added that it is committed to guarantee fair outcomes for its customers along with securing the orderly and translucent operation of the markets.
Measures taken by HSBC to improve the control environment in its Global Markets division includes the implementation algorithmic trading to manage risk around benchmark orders, updating the policies for sales, pricing and order handling, and engaging with outside firms to audit its internal controls.
On Thursday, it was announced that the UK-based global financial services company, HSBC Holdings Plc, had entered into a deferred prosecution agreement to resolve charges that it engaged in a scheme to defraud two bank clients.