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FSA orders HSBC to bolster anti-money laundering efforts

by Daniel Grote on Dec 12, 2012 at 08:42

The Financial Services Authority (FSA) has ordered HSBC to bolster its anti-money laundering processes after its $1.9 billion fine by US regulators following an investigation showing drug money was laundered through the bank.

The FSA has outlined a four-point action plan for the bank. it has required that the bank:

establish a board committee overseeing issues related to ant-money laundering, sanctions, terrorist financing and proliferation financing;
review policies to ensure all parts of the bank adhere to standards equivalent to UK requirements;
appoint a money laundering reporting officer;
employ an independent monitor to oversee compliance with requirements.

The regulator said it would supervise the bank to ensure it complied with the measures.

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4 comments so far. Why not have your say?

Good to read the FSA are once again on the ball and showing strongs signs of proactivity by requiring HSBC to appoint a money laundering officer after a $1.9 billion fine for laundering drug money ! Staggers believe. What next HSBC sponsoring the British Lions. The Panto season truly has started. Merry Christmas to all.,

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Does this mean they didn't have an MLRO until now? So who have all the suspicous reports been notified to within HSBC to date?

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A spokesman for the FSA said, "We sent a very strongly-worded memo to somebody or other in the big building next door, suggesting they do what these American chaps said. We expect the FCA, which is a completely new and different organisation, to continue with similar levels of proactivity".

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Still Deciding

Dec 12, 2012 at 10:17

I'm just wondering what 'ant-money laundering' is. I assume that it's when you get ants to clean your money. What a great idea.

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