The UK’s Financial Conduct Authority (FCA) is currently investigating possible compliance failures in HSBC’s financial crime systems, according to an HSBC spokesman.

The bank is already under scrutiny by US authorities monitoring its money laundering controls.

FCA concerns

An HSBC spokesman confirmed that the FCA had commissioned what is known as a 166 Review during the final quarter of 2016. The FCA itself has so far declined to comment.

The review gives the FCA power to obtain a view from a third party, which the authority defines as a skilled person, about aspects of a regulated firm’s activities if it is concerned or wants further analysis.

Enforcement potential

The 166 Review, which would be undertaken typically by an accountancy or professional services firm, may result in an enforcement action.

The FCA monitors conduct in the financial services industry but can refer matters to the regulator if further actions, including enforcement, are required.

US scrutiny

The US Department of Justice is currently investigating potential issues around the bank’s anti-money laundering controls.

The FCA investigation was launched after the monitor installed by US authorities to oversee improvements in HSBC’s financial crime measures flagged worries about its progress.

Categories: Trade Based Financial crimes News