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.