HSBC prepares for criticism over AML measures

In response to the severe money laundering penalties placed on HSBC in 2012, the bank has reportedly been reshaping its businesses worldwide to conform to US anti-money laundering (AML) standards.

But according to an article in the Wall Street Journal (WSJ), despite HSBC’s significant efforts to improve its AML programme, an independent US monitor will soon release a report assessing and criticising the British bank’s attempts to meet US compliance standards.

Making progress
After agreeing to pay US$1.9 billion in penalties and having entered into a five-year deferred-prosecution agreement over its sub-standard money laundering controls, HSBC has been seen to be making genuine efforts to improve its AML programme the WSJ said.

It added that the bank has invested hundreds of millions of US dollars in its AML systems, and hired several thousand compliance staff, including the former head of the UK’s counterintelligence service.

More change needed
Despite moves in the right direction, the article suggests that HSBC’s efforts will be deemed ‘not good enough.’

Years of mergers and acquisitions have left the bank’s technology systems in desperate need of ‘integration, coordination and standardisation,’ Michael Cherkasky, the US monitor in charge of checking the bank’s progress explained last year.

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Categories: Trade Based Financial crimes News

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