Last week the international news agency Reuters disclosed a report carried out by the West Virginia US Attorney’s Office on banking giant HSBC Bank USA. Following in the footsteps of Citigroup and Bank of America, HSBC are now coming under fire for compliance breaches. Despite a harsh warning issued in 2003, regulators have revealed that HSBC has failed to "ensure that the bank fully addresses all deficiencies in the bank's anti-money laundering policies and procedures" as requested by bank regulators.
Prosecutors claimed that HSBC failed to comply with anti-money laundering rules and regulations, did not train staff to an appropriate level and failed to review policy alerts. If these assertions are correct this case could lead to a one of the most severe fines ever given and make history by charging one of the largest financial organisations in the world.
HSBC spokesman Robert Sherman has stated that the bank “regularly reviews risk ratings” and “have revised and strengthened our country risk rating review policies." Despite this the Office of the Comptroller of the Currency (the OCC) claimed that HSBC’s compliance programme was “ineffective”, and found various report and review failures within the company.
The findings serve as a strong warning to all financial institutions. Despite being the fifth-largest bank in the world in terms of market value they appear to have failed to invest in governance. Described as having “a large appetite for risk”, HSBC have now become a further example of the growing importance of secure and reliable GRC.
Xactium’s Policy Manager allows you to effectively and efficiently manage your organisation’s policies and procedures. Ensure your company complies with policy and procedure regulations and lower your risk exposure.