04 September 2015

HSBC compliance head quits at US hearing

18 July 2012  |  5659 views  |  0 HSBC web screen shot

HSBC's head of compliance fell on his sword in front of a US Senate subcommittee Tuesday after the banking giant was excoriated for lax money laundering controls.

David Bagley quit his post after ten years in the job as the bank was subjected to a stinging attack by US politicians over its use as a conduit for Mexican drug money and terrorist financing.

In a damning report, the Senate committee slammed an inadequate compliance regime that appeared to consistently ignore warnings that the bank was being used as a major channel for money laundering. It follows a multi-year investigation that may yet see the bank slapped with criminal charges and up to a$1 billion in fines from multiple US Federal agencies, including the US justice and treasury departments and the Manhattan District Attorney's office.

In tendering his resignation, Bagley said that the bank was a victim of its own success, operating a compliance culture that was unable to keep track of events across its sprawling global network of offices and affiliates.

"The bank underestimated some of the challenges presented by its numerous acquisitions, and despite efforts to meet these challenges, we were not always able to keep up," he said in a written submission to the subcommittee.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

23 June, 2011

Related company news

 


Who is commenting?

Finextra Member Commented on: HSBC to rebrand Britsh...
Finextra Member Commented on: Zapp to use behavioura...

Top topics

Most viewed Most shared
Third of Brits expect day-to-day mobile pa...
8381 views comments | 39 tweets | 15 linkedin
Payments UK sets out vision for 'world cla...
6948 views comments | 17 tweets | 10 linkedin
UK boosts contactless limit to £30
5761 views comments | 31 tweets | 20 linkedin
PayPal rolls out personalised URLs for P2P...
5682 views comments | 34 tweets | 18 linkedin
Behold the contactless jacket
5514 views comments | 23 tweets | 18 linkedin

Featured job

Max £55k
London

Find your next job