U.S. Agency Issues CeaseandDesist Order to HSBC
By Christopher Wellisz and Jon Menon
Oct. 7 (Bloomberg) — HSBC Holdings Plc’s North American unit agreed with the Federal Reserve to improve its risk management, including anti-money laundering compliance.
The Office of the Comptroller of the Currency also issued a cease-and-desist order against HSBC Bank USA NA in McLean, Virginia, for violating the Bank Secrecy Act, according to a statement today by the Fed.
“HSBC has a global commitment to maintaining the highest level of compliance capability and culture in markets around the world,” HSBC said in a statement today. “HSBC North America is continuing to work closely with its regulators to fully address and resolve issues raised.”
HSBC said in an Aug. 2 regulatory filing it was under federal investigation over possible violations of anti-money laundering rules. The inquiries related to the company’s global banknotes business, which transports currency between central banks and other lenders and its foreign correspondent operation, enabling banks to move money to countries where they don’t have a presence, the company said at the time.
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Published on 10/10/2010 22:12:29