Banking giant HSBC is said to be facing a one billion dollar fine after it failed to ensure it had taken the appropriate steps to guard against the financing of terrorism and other criminal acitivity.
Writing in an internal memo to his staff, Chief Executive Stuart Gulliver admitted that between 2004 and 2010, the bank's anti-money laundering controls "should have been stronger and more effective, and we failed to spot and deal with unacceptable behaviour".
He added that it was "right that we be held accountable and that we take responsibility for fixing what went wrong".
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The bank is set to appear in front of the US Senate's investigative panel next week (Tuesday 17th).
In the 2011 annual report the bank warned "significant" fines related to the lack of controls were possible, and some analysts believe this figure could be as high as $1.0bn, although others have suggested it will not be this high.
At the hearing the bank will be expected to detail what it has done to improve and tighten its controls against money laundering.
Shares were trading 2.29% lower at 555.7p by 14:33 on Thursday.
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