Seeking Alpha

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

  • 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.
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