Senate report criticizes HSBC for money laundering, inadequate monitoring

[alp227]

Source: Washington Post

The U.S. affiliate of global banking giant HSBC was for years a haven for foreign money laundering, drug-trafficking money and potential terrorist financing activities, largely because of the bank’s woefully inadequate monitoring practices, according to a 340-page Senate report scheduled for release Tuesday.

The report chastises the bank’s primary U.S. regulator, the Office of the Comptroller of the Currency, for failing to take more aggressive enforcement measures against the bank after the OCC became aware of illicit activities.

“Banks that ignore anti-money-laundering rules are a big problem for our country,” said Sen. Carl Levin (D-Mich.), who chairs the permanent subcommittee on investigations. “But also troubling is a bank regulator that does not adequately do its job.”

Both HSBC executives and top officials from the OCC are expected to encounter stiff questioning Tuesday when they face Senate lawmakers during a hearing on Capitol Hill. The report comes as HSBC, which has faced a string of alleged money-laundering lapses in the past, works to overhaul its practices and rehabilitate its image.

Read more: http://www.washingtonpost.com/business/economy/senate-report-criticizes-hsbc-for-money-laundering-inadequate-monitoring/2012/07/16/gJQABhqXpW_singlePage.html

[dballance]

1. Stiff Qustioning Maybe, But

I can already hear the words "On the advice of counsel I'd invoke my rights under the 5th Amemendment..."

[SpankMe]

2. In a Republican administration...

...this wouldn't get a second look. They'd just scream that any investigation would cost jobs and be socialist.

[Eugene]

3. HSBC head of compliance stepping down

Source: Associated Press

HSBC head of compliance stepping down

AP foreign, Tuesday July 17 2012

MARCY GORDON

AP Business Writer= WASHINGTON (AP) — The chief compliance officer of big international bank HSBC says he is stepping down from that position after an investigation found that lax controls at the bank allowed Mexican drug cartels to launder billions of dollars through its U.S. operation and other illicit transactions.

David Bagley, the head of compliance for London-based HSBC Holdings, said in testimony at a hearing by the Senate Permanent Subcommittee on Investigations that he will leave that post but remain at HSBC.

Bagley and other current and former executives of the bank apologized for lapses but said they weren't fully aware of illicit transactions flowing through the bank.

Senators expressed skepticism that they didn't know about problems that persisted for seven years.

http://www.guardian.co.uk/world/feedarticle/10340770

[Octafish]

4. Did Mr. Drysedale turn down Jed Clampett's millions?

How can one expect a banker to turn down Drug Inc's billions?