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View the article online at http://citywire.co.uk/wealth-manager/article/a644982

FSA asks HSBC to hire anti-fraud guru after US fine

by Sarah Miloudi on Dec 11, 2012 at 17:26

FSA asks HSBC to hire anti-fraud guru after US fine

The Financial Services Authority (FSA) has called on HSBC to install an anti-money laundering reporting officer following action taken against the bank in the US.

In a note sent out after the London market closed, the UK's City regulator said it was taking action in relation to issues with HSBC’s compliance with anti-money laundering rules and American sanctions requirements.

'The FSA has worked closely with the relevant US authorities and this action is separate to, but coordinated with the actions taken by them,' the FSA said.

Early on Tuesday it emerged HSBC and rival Standard Chartered had agreed to pay $2.6 billion in fines linked to anti-money laundering allegations in the US and following on from this the British financial services watchdog said it had made a number of requirements of HSBC to ensure similar failings were never repeated.

The FSA asked HSBC to:

  • Establish a committee of its board with a mandate to oversee anti-money laundering matters, sanctions, terrorist financing and proliferation financing;
  • To review the relevant group policies and procedures to ensure all parts of the HSBC Group are subject to standards equivalent to those required under UK requirements;
  • To appoint a group money laundering reporting officer with responsibility for ensuring systems and controls are in place across the group and to make sure the bank is legally compliant; and 
  • To employ an independent monitor to oversee its compliance with UK anti-money laundering, sanctions, terrorist financing and proliferation financing requirements and to provide independent reporting to the HSBC board committee and regulators.

Speaking publicly about these requirements imposed on HSBC, the FSA said it would take steps to ensure HSBC complied with these measures.

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