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Top US and UK crime brains to beef up HSBC's risk controls

by Sarah Miloudi on Jan 30, 2013 at 11:21

Top US and UK crime brains to beef up HSBC's risk controls

US deputy attorney general Jim Comey will chair HSBC's new 'financial systems vulnerabilities' committee.

The bank has created the committee following its £1.2 billion fine for anti money laundering failings, hoping the new division of its board will beef up its controls.

'We have established this committee to provide governance, oversight and policy advice and to support the work which Stuart Gulliver, the group chief executive, is leading to simplify business activities and enhance risk management and control through enforcing and adopting the highest behavioural and compliance standards across HSBC,' explained chair Douglas Flint as he announced the move.

CEO Gulliver (pictured) said the committee would benefit from a team of expert advisers. '[It] will provide invaluable guidance as we strengthen our capabilities and enforce the highest standards, in particular in relation to combating financial crime,' he said.

Also on the committee and serving as non-executive board members are Rona Fairhead,  and Simon Robertson, and Bill Hughes, who served as the UK's first head of the Serious Organised Crime Agency will serve as an adviser.  Dave Hartnett, who in 2012 retired as the permanent secretary for tax at HMRC, will also be an adviser.

The scope of the committee's responsibilities encompass oversight, governance and policy guidance, and it will pay particular attention to anti-money laundering systems and controls, which US regulators last year found lacking following an investigation of money transfers made on behalf of Iran.

At the time of the fine, CEO Gulliver said the bank was 'profoundly sorry' for the failings and accepted full responsibility.  He also spoke of the need to do better, though added the 'HSBC of today' is vastly different to the one that made the errors.

The bank also came under the glare of the UK's regulator for the failings. The Financial Services Authority (FSA) urged it to introduce a more robust anti-money laundering system.

2 comments so far. Why not have your say?

PCIAM

Jan 30, 2013 at 12:10

The headline stated "top crime brains". There I was thinking that Moriarty hadn't died at the Reichenbach falls, and had got an honest job at last.

I was sadly disappointed.

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Michael Mason-Mahon

Jan 30, 2013 at 14:51

More words from Mr Gulliver and Mr Flint, can anyone afford to believe what Mr Flint & Mr Gulliver are saying?

Mr Flint states "Nothing is more important than our Reputation.

This is the description by Senator Levin said HSBC had been ‘pervasively polluted for some time’.

Why did Mr Flint and Mr Gulliver not go to the Senate hearing in the USA? Maybe they wanted Mr Flint to take an OATH?

Mr Rakesh Shetty holds a protest calling for HSBC's License to be Suspended in India: http://www.youtube.com/watch?v=50lKgAn_ZKk

CEO Gulliver He also spoke of the need to do better, though added the 'HSBC of today' is vastly different to the one that made the errors. Mr Gulliver please remember Mr Flint has been a Board Director since 1995, also he was the Finance Director for 17 years and 2 years as Chairman. Why is Mr Gulliver describing illegal behavior as errors?

Will please explain what is vastly different in Mr Flint's behaviour and the Board of Directors of HSBC Holdings Plc while this illegal behaviour was going on?

Mr Flint states "Nothing is more important than our Reputation. What has Mr Flint done to protect the reputation of HSBC?

Has Mr Flint been untruthful concerning HSBC Limited in India asking customers to sign blank Letter Of Instructions?

Has Mr Flint a problem with telling the truth at the 2012 AGM like he had at the 2011 AGM? You decide?

http://www.youtube.com/watch?v=Jl5O-2mJDwc

Employee of HSBC Mr Root who asked the most plangent question: "What is this, the School of Low Expectations Banking?"

HSBC has been fined for breaching the rules and regulation of the Regulators on two Continents (please remember these abuses).

HSBC states: HSBC takes compliance with the law, wherever it operates, very seriously. Is HSBC telling the truth?

What is the Truth about HSBC & India? Will the next scandal for HSBC be in India?

When customers send The Hongkong and Shanghai Banking Corporation Limited in India signed Authorisation that they want a specific person to represent them, has not Mr Flint and the Bank denied them this simple right, why?

Mr Flint was saying in 2011 sorry for our weaknesses, 2012 he was saying "‘We cannot undo the mistakes"

What excuses will Mr Flint be using concerning India?

Mr Flint states "I am, however, confident that HSBC has the people, the financial strength and the right strategic focus and values to do well for those who place their trust in us, thereby meeting their expectations of us and contributing to the fulfilment of their aspirations and ambitions. That is what we exist to do.

Yes Mr Flint, HSBC has the financial strength; to pay any fines for their illegal practices.

Mr Flint, Regulators and customers have place their trust in HSBC and look at how HSBC HAS ABUSED THAT TRUST.

Mr Flint you have not met the expectations of the people in India or the Regulators around the world.

HSBC did meet the expectation of overseas banks with links to terrorist financing, HSBC did meet the expectation for people wanting to launder drug money.and as far as contributing to the fulfilment of their aspirations and ambitions you did fulfil their ambitions of laundering money. Which HSBC did that for many years. HSBC takes compliance with the law, wherever it operates, very seriously.

In India HSBC has killed the aspirations and ambitions of so many people by falsely registering them with CIBIL, asking people to sign blank LOI's, demanding money illegally.

"enforcing and adopting the highest behavioural and compliance standards across HSBC,' explained chair Douglas Flint as he announced the move. Would customers in India would reject this statement by Mr Flint as being totally untrue?

Is Mr Flint telling the truth about what is going on in India?

HSBC states: HSBC takes compliance with the law, wherever it operates, very seriously. What a BAD Joke.

Help Stop Bankers Cheating

Michael Mason-Mahon

E-mail: ckmdm@aol.com

"First they ignore you, then they ridicule you, then they fight you, and then you win."

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