WASHINGTON (MNI) – The U.S. banking subsidiary of London global
financial services company HSBC has agreed to remedy defects in its
compliance with U.S. regulations designed to prevent money laundering,
the Federal Reserve and Office of the Comptroller of the Currency said
Thursday.
HSBC, the largest bank in Hong Kong and the largest international
bank in China, was hit with a “cease and desist” order by the Fed aimed
at both the U.S. holding company and the Delaware, Virginia and Nevada
based financial operations, a severe reprimand that followed talks with
the firm’s top executives.
Since the organization “has adopted a firmwide compliance risk
management program designed to identify and manage compliance risks
across the consolidated organization” including the U.S. holding company
and all its subsidiaries, the “cease and desist” order was not
accompanied by even more severe measures.
As part of the agreement, HSBC in the U.S. must submit to the Fed
an “acceptable written plan” of its “compliance risk management program”
regarding its adherence to Bank Secrecy Act standards.
** Market News International Washington Bureau: 202-371-2121 **
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