Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: Rathbone's Newcastle boss on the road to £1bn

Profile: Rathbone's Newcastle boss on the road to £1bn

Starting from zero assets on day one, Rathbone's Newcastle team now looks after just over £400 million in clients money

Wealth Manager on Twitter