The FT notes:
HSBC has been ordered by US regulators to overhaul its internal controls in the US after a probe found the bank’s ineffective compliance programmes created “a significant potential for unreported money laundering or terrorist financing”, the FT reports. Thursday’s actions by the Federal Reserve and the Office of the Comptroller of the Currency are the latest blow to HSBC, which announced the retirement of its top US executive in June and is under a separate investigation by the Department of Justice and the US Attorney’s Office.
Oh dear, more problems for the empire run by the Rev Stephen Green.
Why is he becoming a peer?
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Personally, I cannot accept any excuses for companies such as these not having adequate risk management, compliance & anti-money laundering controls and processes in place. The are lucky that they haven’t been fined. RBS were not so lucky earlier this year when the FSA took action. Perhaps therein lies the problem the US regulator hasn’t been as hard on them as the FSA have been on RBS.
As for the Reverend…well ultimate responsibility for legal & regulatory compliance lies with the board…any more failings and you’d have to ask yourself who is going to fall on their sword. Mind you, it would appear this is a US failing and the head of the US subsidiary has now moved on.
But surely Colonel Mustard was seen to be leaving the US carrying a length of lead piping?
Angolans wasn’t it? hmmm big in the Channel Islands….
It’s funny how the USA are so quick to have a go at non-US banks (most of the time with good reason) but they seem too slow to deal with their own. If you have read the recent testimony of Eric Lewis to the US House of Representatives Sub Commitee on Financial Services on Oversights & Investigations his claims about the abuse of the US banking system by one middle eastern person are astounding. If true approximately US$1trillion (yes trillion) was laundered via US banks who have been extremely negligent or incompetent during the process. And where were the regulators? If you read the report you will see that there were so many red flags they could have been in China! And the banks concerned even tried helping the money launderer by suggesting ways of concealing the transfers/ avoiding detection! When I read that I thought of the Lloyds, Barclays, Credit Suisse and RBS cases re lack of processes and controls etc.
And don’t get me started about Wachovia that have admitted to laundering US$375bn of Mexican drug money between 2004 & 2007 and have been slapped with a paltry fine of US$160m.
And then there’s Levin’s report earlier this year about US$billions being routed into the US from corrupt African regimes etc.
The USA is keen to use the PATRIOT act and FCPA etc to spread their influence far and wide but flatly refuse to get their own house in order, I wonder why? I’m beginning to think that they are turning a blind eye so that illicit funds can flow into the country. And I’d bet it heads to Delaware, Wyoming, South Dakota et al.
@JohnBuckles
We agree on this
@Richard Murphy
Totally!