FSA requires action of HSBC Group

14 Dec 2012

The FSA is taking action against HSBC to ensure compliance with anti-money laundering rules and US sanction requirements. The FSA requires HSBC Holdings plc to:

• establish a committee of the HSBC Board with a mandate to oversee matters relating to anti-money laundering, sanctions, terrorist financing and proliferation financing;
• review relevant Group policies and procedures to ensure that all parts of the HSBC Group are subject to standards equivalent to those required under UK requirements;
• appoint a Group Money Laundering Reporting Officer (MLRO) who will ensure systems and controls are in place in the Group and that the Group complies with all relevant legal and regulatory requirements; and
• employ an independent monitor to oversee the Group’s compliance with UK anti-money laundering, sanctions, terrorist financing and proliferation financing requirements and to provide independent reporting to the HSBC Board committee and regulators.

The FSA has coordinated this action with action taken by the relevant US authorities.

A copy of the FSA’s press release is available. http://www.fsa.gov.uk/library/communication/pr/2012/111.shtml