Millions fine for British bank HSBC for failing money laundering controls

Friday, 17 December 2021 13:59

LONDON (AP/BLOOMBERG) – British bank HSBC has been fined nearly £64m by Britain’s financial regulator, the Financial Conduct Authority (FCA), for failing to monitor money laundering. According to the FCA, there have been serious deficiencies in automated processes to monitor suspicious transactions at banks for years.

The FCA stated that between 2010 and 2018, banks failed to comply with money laundering oversight regulations because certain systems were not fully compliant or were not sufficiently risk sensitive. Regulators pointed to a series of cases in which HSBC’s software failed, as a result of which suspicious payments were not immediately reported to British authorities.

The financial watchdog said that because of the long period of time in which this oversight failed, the matter was taken very seriously. There have also been several internal and external reports that have exposed the matter without HSBC doing anything about it, the FCA said.

HSBC has cooperated with the investigation and therefore the fine is lower, the FCA said. The bank points out that it has improved its control system against money laundering by investing heavily in technology.

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Shaun Dennis

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