FCA has fined HSBC £63.9m for failings in its AML transaction monitoring process between March 2010 to March 2018.
FCA found that the bank did not:
- until 2014, consider whether the scenarios used to identify ML/TF indicators covered relevant risks;
- after 2016, carry out timely risk assessments for new scenarios;
- appropriate test and update the parameters set by the system for flagging potential suspicion; nor
- check the accuracy and completeness of the data going into the system.
HSBC did not dispute the findings, and qualified for a 30% discount, and has undertaken a large scale remediation project into its AML processes.