In December 2021 HSBC was fined £63.9m by the Financial Conduct Authority (FCA) for "unacceptable failings" in its anti-money laundering (AML) systems. The bank did not challenge the findings and agreed to settle, resulting in its fine being cut from £91m.
So, what exactly went wrong?
Over an 8-year period (2010-2018), two of HSBC’s key automated transaction monitoring systems were not sufficiently risk sensitive. Equally importantly, it failed to ensure that the policies which managed and monitored the systems were followed correctly.
In this insightful report, we examine the three key components of HSBC’s transaction monitoring system that were flawed and underline the critical role that rigorous and comprehensive client transaction monitoring plays in ensuring compliance at all times.
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