HSBC’s Swiss private banking unit violated money laundering regulations involving politically exposed persons, according to Finma.
HSBC Private Bank (Suisse) has breached money laundering regulations, according to a statement by the Swiss Financial Market Supervisory Authority (Finma). The breaches were related to enforcement proceedings opened in December 2021 in connection with banking relationships held with two politically exposed persons (PEP), although they were not named.
The Swiss watchdog said the the British private bank failed to carry out «an adequate check of either the origins, purpose or background of the assets involved». High-risk transactions were «insufficiently clarified and documented», including $300 million between 2002 and 2015 which originated from a government institution and were transferred from Lebanon to Switzerland before primarily flowing back to other accounts in Lebanon.
Measures Imposed
As a result, Finma has required HSBC to conduct a review of the anti-money laundering aspects of all high-risk business relationships, including those with PEPs as well as the risk categorization of other customers. An audit agent will monitor the implementation and submit a report to Finma. Until such reviews are completed, the bank is not allowed to enter into any new business relationships with PEPs.
«In addition, HSBC Private Bank (Suisse) SA must issue Finma with a comprehensive presentation of the responsibilities within its board of directors and executive management as well as details of how they are assigned,» the regulator added. «The decision has not entered into force.»
