Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
HSBC lapses left US economy exposed to exploitation by terrorists - Senate report
07-17-2012, 10:58 PM,
HSBC lapses left US economy exposed to exploitation by terrorists - Senate report
Quote: These are two of the findings in a 340-page study from the US Senate that accuses Britain’s biggest bank of a series of compliance lapses between 2004 and 2010.

HSBC, the only British bank with a branch network in America, failed to properly staff its compliance department and wrongly designated Mexico as a “low-risk” country.

The findings are a major embarrassment for HSBC, some of whose senior executives will appear before the Senate committee tomorrow to explain the failings.

In one of the more damaging accusations, the report says HSBC resumed providing banking services to a Saudi Arabian bank despite speculation it had links to financing terrorism.

In an emailed statement, HSBC said the Senate report had provided "important lessons for the whole industry in seeking to prevent illicit actors entering the global financial system".

The bank said it is spending more money on compliance and has become more coordinated in policing high-risk transactions.

HSBC is also criticised by the committee for designating Mexico as “low-risk” despite the widespread use of the country’s banking system by drug cartels. The decision made it easier for money to be moved between HSBC’s affiliate bank in Mexico and its network in the US. Its Mexican bank should have been treated as a “high-risk correspondent client subject to enhanced due diligence and monitoring,” the report said.

The report also contained strong criticism of the Office of the Comptroller of the Currency, a top US bank regulator, saying the regulator failed to crack down on the bank despite multiple red flags, allowing money laundering issues "to accumulate into a massive problem".

HSBC has warned investors that it could face a significant fine in the US, with some analysts speculating the penalty could reach $1bn.

“Accountability is essential and that is what has been missing here,” said Carl Levin, the chairman of the committee on permanent investigations. HSBC said last night that it had taken several steps to improve its compliance, including doubling its spend on compliance and enforcing standards globally.
The revolution is not an apple that falls when it is ripe. You have to make it fall. - Che Guevara

Resistance Films Youtube Channel

TriWooOx Podcast

Possibly Related Threads...
Thread Author Replies Views Last Post
  Keiser Report E574 - Ghostbusters of Financial Fraud stiffy 0 317 03-14-2014, 06:04 PM
Last Post: stiffy
  Clouded Titles - The Biggest Mortgage Fraud in History Exposed! datars 1 905 10-17-2013, 04:36 AM
Last Post: SoulSearcher
Big Grin HSBC Blasted with HUGE fine by U.S. Prosecutor CharliePrime 0 333 12-15-2012, 04:28 PM
Last Post: CharliePrime
  Black Dossier: HSBC & Terrorist Finance (Updated w/part 2!) h3rm35 1 635 09-26-2012, 01:50 AM
Last Post: h3rm35
  Charting the Cozy Connections between JP Morgan and the Senate Banking Committee h3rm35 0 443 06-15-2012, 12:52 AM
Last Post: h3rm35
  Keiser Report: Anti-Bank Currency icosaface 1 602 04-08-2012, 11:37 AM
Last Post: Zammo
  The American Economy is "Dead": The Illusion of Economic Recovery h3rm35 0 410 02-01-2012, 02:11 AM
Last Post: h3rm35
  Nation’s wealthiest 1 percent triple their incomes, according to CBO report R.R 6 1,678 11-21-2011, 08:13 AM
Last Post: rockingtheboat
  Latest Kesier Report - A Must See! yeti 0 310 11-10-2011, 12:11 AM
Last Post: yeti
Information The Top 100 Statistics About The Collapse Of The Economy FastTadpole 2 638 10-16-2011, 01:03 AM
Last Post: JazzRoc

Forum Jump:

Users browsing this thread: 1 Guest(s)