FSA forces new rules on HSBC after record fine

Laura Miller
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The Financial Services Authority (FSA) is forcing HSBC to improve its money laundering safeguards after the bank was fined $1.9bn by US regulators for breaches, the largest fine paid in such a case.

It comes as the bank said it would spend an initial $700m improving its money laundering safeguards. The FSA said HSBC must establish a committee of the HSBC Board with a mandate to oversee matters relating to anti-money laundering, sanctions, terrorist financing and proliferation financing. It must review relevant group policies and procedures to ensure that all parts of the HSBC group are subject to standards equivalent to those required under UK requirements. It will also need to appoint a group money laundering reporting officer who will be an FSA approved person, with responsi...

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