HSBC is accused of facilitated financing of terrorism and other criminal activities by lacking effective internal controls between 2004 and 2010.

The UK-based bank refused to comment on the possible involvement of its private banking division in the scandal.

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According to analysts’ speculations, US regulators could impose a higher fine on HSBC than the $619m ING agreed to pay in January 2012, following the accusation it broke US sanction laws by helping Cuban and Iranian companies to move capital through the American banking system.

HSBC executives are to appear before the US Senate’s investigative panel on July 17.

The meeting is likely to feature the testimony of Irene Doner, HSBC’s North America chief executive.

A leaked internal memo to staff suggests the bank is going to apologise to US lawmakers for its wrongdoings in order to reach a settlement.

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In the memo, HSBC CEO Stuart Gulliver said: "Between 2004 and 2010, our anti-money laundering controls should have been stronger and more effective, and we failed to spot and deal with unacceptable behavior. [It is] right that we be held accountable and that we take responsibility for fixing what went wrong"

Reports suggest HSBC will have to show the US senate the improvement made to its compliance control systems.

According to the internal memo, since 2010 the bank has doubled its efforts to assure legal compliance, bringing the amount spent to $400m, up from $200m.

"The Board and leadership of HSBC are fully committed to implementing the highest standards and have already made significant changes to our organisation’s structure to bring this about" an HSBC spokesman told PBI.

 

 

Source: Private Banker International