HSBC ordered to step up anti laundering actions
(8 October 2010 – Global) The US central bank has ordered British bank HSBC, Europe's biggest bank, to step up actions against money laundering after a probe found violations of banking laws and rules.
A 'cease and desist order' against HSBC North America Holdings (HNAH) was announced yesterday by the Federal Reserve and was agreed to by the US subsidiary of the London-headquartered bank.
The cease-and-desist order was issued 'for violating the Bank Secrecy Act and its underlying regulations,' the Federal Reserve said.
'The order requires HNAH to take corrective action to improve its firm-wide compliance risk-management program,' including efforts against money laundering, the Federal Reserve added.
HSBC North America Holdings owns branches across the nation and a number of other nonbank subsidiaries.
HNAH said separately it had entered the consent order with the Fed, and its HSBC Bank USA subsidiary has entered into a consent order with the US Office of the Comptroller of the Currency.
'These actions require improvements for an effective compliance risk management program across the company's US business, including Bank Secrecy Act and Anti-Money Laundering (AML) compliance,' the holding company said in a statement.
'The bank notes that it has cooperated fully with its regulators in reaching these agreements and continues to cooperate fully with them in implementing the agreement terms, and with other government agency investigations,' HSBC said
The cease-and-desist order was issued 'for violating the Bank Secrecy Act and its underlying regulations,' the Federal Reserve said.
'The order requires HNAH to take corrective action to improve its firm-wide compliance risk-management program,' including efforts against money laundering, the Federal Reserve added.
HSBC North America Holdings owns branches across the nation and a number of other nonbank subsidiaries.
HNAH said separately it had entered the consent order with the Fed, and its HSBC Bank USA subsidiary has entered into a consent order with the US Office of the Comptroller of the Currency.
'These actions require improvements for an effective compliance risk management program across the company's US business, including Bank Secrecy Act and Anti-Money Laundering (AML) compliance,' the holding company said in a statement.
'The bank notes that it has cooperated fully with its regulators in reaching these agreements and continues to cooperate fully with them in implementing the agreement terms, and with other government agency investigations,' HSBC said
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