HSBC could be facing billion dollar fine
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.
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".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
NR
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
How to invest in nuclear power
We need nuclear power to go green, says Dominic Frisby. But there is a better option than huge power stations
By Dominic Frisby Published
-
Chase slashes its easy-access savings rate – is it time to switch?
The Chase easy-access savings account has proved popular with savers thanks to its competitive rate and bonus deals. But, as the rate has dropped, has it lost its charm?
By Katie Williams Published