The Financial Conduct Authority (FCA) has fined HSBC Bank plc (HSBC)
The Financial Conduct Authority (FCA) has fined HSBC Bank plc (HSBC) £63,946,800 for failings in its anti-money laundering processes. The FCA found that three key parts of HSBC’s transaction monitoring systems showed serious weaknesses over a period of eight years from 31 March 2010 to 31 March 2018.
HSBC used automated processes to monitor hundreds of millions of transactions a month to identify possible financial crime. However, the FCA found that three key parts of HSBC’s transaction monitoring systems showed serious weaknesses over a period of eight years from 31 March 2010 to 31 March 2018. In particular, HSBC failed to:
HSBC did not dispute the FCA’s findings and agreed to settle at the earliest possible opportunity, which meant it qualified for a 30% discount. Otherwise, the FCA would have imposed a financial penalty of £91,352,600.
HSBC has undertaken a large-scale remediation programme into its anti-money laundering processes, which was supervised by the FCA.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said:
'HSBC’s transaction monitoring systems were not effective for a prolonged period despite the issue being highlighted on numerous occasions. These failings are unacceptable and exposed the bank and community to avoidable risks, especially as the remediation took such a long time. HSBC continued their remediation to address these weaknesses after the relevant period.'
The FCA’s action relates to HSBC’s compliance with UK laws and the matters addressed in our Notice were not part of the action taken by the U.S Department of Justice in 2012.
To download The Decision Notice for HSBC Bank plc Click here:https://www.fca.org.uk/publication/decision-notices/hsbc-bank-plc.pdf .