Skip to main content

Could Some Regulator Help HSBC Find The Bad Guys?

  • Author:
  • Updated:

HSBC’s chief legal officer has figured out how to ferret out “the truly bad actors:” Part of it involves the bank actually looking for them, but the much bigger part comes with a bill to taxpayers.

“Having a first-rate compliance program is necessary to protect the institution and comply with the law, but not sufficient to identify which are the truly bad actors,” HSBC’s chief legal officer Stuart Levey said at a London conference, according to prepared remarks.

The public and private sectors rely largely on “separate bodies of information” to combat financial crime, which leads to both groups “fighting this battle with one arm tied behind our backs,” he said….

For instance, the private sector reports potentially nefarious conduct to the government through methods like “suspicious activity reports,” but has no understanding of ”the illicit conduct government is most concerned about and its assessment of who may be engaged in that conduct. The reporting would be enhanced if there were a greater understanding of the government’s concerns.”

HSBC’s Top Lawyer on What Banks Need to Spot “Truly Bad Actors” [WSJ Risk & Compliance Journal blog]


HSBC Explaining Some Hiring Practices To The SEC

Specifically the one where it (allegedly!) hands out favors to the children of important officials in Asia.

Deutsche Bank Sinks Right Past HSBC

Getting caught money-laundering for the Iranians and drug cartels is pretty bad for business, as HSBC's 2012 results demonstrate. But coming into compliance with all these new banking regulations is even worse.