The UK Financial Conduct Authority (FCA) had fined HSBC $85.16 million because of its ineffective anti-money laundering processes.
According to the FCA, HSBC did not “consider whether the scenarios used to identify indicators of money laundering or terrorist financing covered relevant risks until 2014; and carry out timely risk assessments for new scenarios after 2016.”
HSBC also reportedly ensure that their mechanism for detecting fraudulent or suspicious activity was up to date.
HSBC also did not check whether transactions were accurate or complete.
“HSBC did not dispute the FCA’s findings and agreed to settle at the earliest possible opportunity, which meant it qualified for a 30% discount. Otherwise, the FCA would have imposed a financial penalty of £91,352,600,” said the FCA.
Mark Steward, FCA Executive Director of Enforcement and Market Oversight admitted that HSBC systems were not effective and that such negligence is unacceptable.
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