Failure to put in place appropriate
money-laundering prevention measures could cost HSBC up to $1bn,
according to press reports.

HSBC is accused of facilitated financing of
terrorism and other criminal activities by lacking effective
internal controls between 2004 and 2010.

The UK-based bank refused to comment on the
possible involvement of its private banking division in the

According to analysts’ speculations, US
regulators could impose a higher fine on HSBC than the $619m ING
agreed to pay in January 2012, following the accusation it broke US
sanction laws by helping Cuban and Iranian companies to move
capital through the American banking system.


HSBC seeks US senate

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

HSBC executives are to appear before the US
Senate’s investigative panel on July 17.

The meeting is likely to feature the testimony
of Irene Doner, HSBC’s North America chief executive.

A leaked internal memo to staff suggests the
bank is going to apologise to US lawmakers for its wrongdoings in
order to reach a settlement.

In the memo, HSBC CEO Stuart Gulliver said:
“Between 2004 and 2010, our anti-money laundering controls should
have been stronger and more effective, and we failed to spot and
deal with unacceptable behavior. [It is] right that we be held
accountable and that we take responsibility for fixing what went


Compliance spend increased to

Reports suggest HSBC will have to show the US
senate the improvement made to its compliance control systems.

According to the internal memo, since 2010 the
bank has doubled its efforts to assure legal compliance, bringing
the amount spent to $400m, up from $200m.

“The Board and leadership of HSBC are fully
committed to implementing the highest standards and have already
made significant changes to our organisation’s structure to bring
this about” an HSBC spokesman told PBI.