Swiss financial regulator FINMA has asked HSBC Private Bank, Union Bancaire Privee (UBP) and EFG Bank to pay thousands of Swiss francs for mishandling the money of confidants of the ousted Tunisian President Zine al-Abidine Ben Ali.
Citing a RTS television report, Reuters reported that FINMA in April charged HSBC CHF88,000 (US$97,600) for costs, installed an external auditor and banned it from opening accounts for PEPs for three years.
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The regulator had also ordered UBP and EFG in 2012 to pay CHF49,000 and CHF46,000 respectively in costs for the review.
As per the Swiss rules, banks should pay attention to people in high office, known as politically exposed persons (PEPs), and their family members and associates, when they open bank accounts to prevent money laundering or other crimes.
HSBC spokesman said that they have taken strong corrective measures since, which were welcomed by the regulator.
"The bank has strict requirements and monitoring controls in place that regulate entering into and maintaining client relationships," he added.
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