us

216.73.216.172

Money Laundering Watchdog Fines HSBC for AML Violations

n-img-hsbc

HSBC Malta has been fined €82,000 by Financial Intelligence Analysis Unit (FIAU) for AML violations. The FIAU found that the bank failed to document why one of its customers made a €2 million transaction.

The FIAU stated that even though the bank had given it more specific information regarding the client in question, HSBC had not backed this up through invoices or other transaction-related supporting documentation.

The FIAU said that in a separate incident, HSBC’s transaction tracking system failed to detect numerous high-value transactions by a particular client, which at times surpassed €800,000.

Even though the rule in effect at the time didn’t result in any warnings being sent regarding the transactions made by that specific customer, HSBC informed the FIAU that a “tuning exercise” had been conducted, and new thresholds had been set up for the transaction tracking system.

The FIAU reported that the bank also claimed that other safeguards in place had prompted it to examine the in-questioned transactions carefully. The unit did, however, highlight that the long-established monetary thresholds to check significant transactions moving through the accounts during a certain span of time were very high, elevating the danger that some large and unusual transactions weren’t being recorded and appropriately investigated by the bank.

Additionally, it was pointed out that in three customer records, HSBC neglected to compile the required paperwork to confirm the legitimacy of the addresses or identities of the senior managing professionals or beneficial owners.

The FIAU claimed that in deciding the penalty, it had taken into account HSBC’s “good level of cooperation” and cordial communication throughout the years, as well as the respect the bank had demonstrated for its anti-money laundering requirements. The  “continuous investment” made by HSBC in its technological and human resources for preventing and fighting money laundering activities has also been taken into account.

Suggested Read: FIAU Imposed a Fine of €130,000 on Olimp Limited for AML Failures

Related Posts

News

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Explore More

News

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Explore More

News

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

Explore More

News

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

Explore More

News

UAE Central Bank hit Financial Firms with fines due to compliance failures

UAE Central Bank hit Financial Firms with fines due to compliance failures

Explore More

News

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Explore More

News

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Explore More

News

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Explore More

News

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Explore More

News

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

Explore More

News

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

Explore More

News

UAE Central Bank hit Financial Firms with fines due to compliance failures

UAE Central Bank hit Financial Firms with fines due to compliance failures

Explore More

News

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Explore More

News

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started