OCC Officials Testify on HSBC Bank Secrecy and Money Laundering Issues (OCC Release)

Several high ranking officials from the OCC testified before a U.S. Senate subcommittee about compliance of the Bank Secrecy Act (BSA) and anti-money laundering (AML) specifically in regards to HSBC North America Holding Inc. The OCC representatives agreed with the subcommittee findings that the OCC should tighten its supervision and agreed to incorporate three recommendation of the subcommittee. The OCC members testified that from 2004-2009 the OCC send HSBC several letters expressing concerns as to HSBC's compliance with BSA/AML, which HSBC did not address. In 2010, OCC expanded its evaluation of the bank's compliance and by October 2010, the OCC issued HSBC a cease and decease letter. The OCC representatives reaffirmed their commitment for the BSA/AML and agreed to strengthen its compliance program. In light of the report and the OCC's testimony as to its plans in this area, it also behooves banks and other financial institutions to revisit their own AML and OFAC procedures. (A copy of the Senate report concerning HSBC is included in yesterdays's news and may also be found by searching on "Enforcement" items in the menu on the left (Look for "U.S. Vulnerabilities to Money Laundering . . . ").

Cross References: Cadwalader's Guide to AML Regulation

View release in full here (links externally to OCC website).