HSBC slapped with fine following failings in Mexican division

Shamed banking giant HSBC has been hit with a fine amounting to around 27.5m dollars which was imposed by the National Banking and Securities Commission (CNBV) in relation to the bank's non-compliance with anti-money laundering systems and controls.

By MoneyWeek

published 25 July 2012

in Features

The fine was for the late reporting of 1,729 unusual transactions, the failure to report 39 unusual transactions, and 21 administrative failures within its Mexican division.

The bank earlier this month issued a statement admitting it "sometimes failed to meet the standards that regulators and customers expect" after the US Senate found it had ignored clear signs its Mexican division was being used as a conduit for billions of dollars of drug money to be transferred to America.

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HSBC Mexico said on Wednesday that it apologises for "its failure strictly to comply with banking regulations, and acknowledges that in the past it has sometimes failed to meet the standards that regulators and customers expect".

The bank added that it is "aware of the importance of strengthening compliance and risk management controls for the overall financial system" and has "already taken actions and invested resources to address the past failures for which it has been fined".

HSBC has already taken steps to put in place both a new senior leadership team and a new strategy, believing the scandal will "provide important lessons for the whole industry in seeking to prevent illicit actors entering the global financial system".

The steps the company has taken included the creation of a new global structure, a "substantial" increase in resources, and adopting and enforcing a single standard globally.

The share price was up 0.9% at 515.20p by 15:19.