HSBC to pay $1bn in fines over controls failure
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HSBC is set to pay out up to $1bn in fines over a failure to have appropriate controls in place to ensure it did not facilitate the financing of terrorism and other criminal acts
The Financial Times reports that an internal memo from chief Stuart Gulliver revealed the bank did not have the controls in place between 2004 and 2010.
The bank is expected to make an apology to US authorities over the controls failure.
It is the latest scandal to hit British banks, following the interest rate swap product misselling and Libor fixing scandals of recent weeks.
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Readers' comments (5)
Neil Walker | 12 Jul 2012 10:14 am
Just a $1bn!
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NW | 12 Jul 2012 10:21 am
And, from 2004 - 2010 they failed to have adequate systems and controls in place - beggers the question what were the regulators in the US doing on their visits to the bank or did they not do any visits.
We are just a very small IFA and mortgage brokerage and we have many systems and controls in place to avoid our business being used to facilitate the financing of terrorism and crime so how come a major bank can't?
Time to apply for a job at HSBC in charge of money laundering me thinks!
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Defeated IFA | 12 Jul 2012 10:29 am
Once again we see more evidence of a regulator that couldnt properly regulate the thermostate on a kettle to work properly. Is this yet another success of of being a world class regulator? God help us all.
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Anonymous | 12 Jul 2012 10:58 am
Bet George Osborne wishes he could steal USA financial services fines the same way he does with the UK!!!
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JHA | 13 Jul 2012 3:36 pm
I have always been told that if I am found to have failed in my money laundering responsibilities then I could end up in jail! This is a non-sensical fine and it wont make any difference. If for once a CEO/ MD was to actually end up in jail for such failings then it might actually make them be a little more dutiful.
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