U.S. Monitor: HSBC with work to do on anti-money-laundering systems

|About: HSBC Holdings PLC (HSBC)|By:, SA News Editor

Compliance monitor Michael Cherkasky believes HSBC is "appropriately committed" to improving its anti-money-laundering program, but found the systems "lack integration, coordination, and standardization."

HSBC agreed to the monitoring and regular reporting as part of its late-2012 $1.9B settlement over money-laundering violations. Today's report is the first one filed.

Cherkasky recommends the bank develop global strategy and implementation plans, with timelines and accountability provisions, suggesting the compensation committee have the power to dock 100% of senior executives' bonuses if they fail to develop an effective program. The filing says HSBC agreed "in principle" with most of the recommendations.

HSBC has already spent plenty on compliance, boosting staff in the are by 1.6K in 2013. It looks like it will have to spend plenty more.