Swiss regulators have found that HSBC failed to conduct necessary checks on “high-risk” transactions totalling $300m (£236.7m) intended to prevent money laundering.
Investigators highlighted multiple deficiencies at the bank’s private branch, particularly regarding its dealings with two politically exposed persons (PEPs).
Regulator Finma has prohibited the bank from engaging in new business with PEPs until it completes a review of its anti-money laundering protocols and current high-risk business relationships.
Finma stated that HSBC, which has cooperated with the investigation, “failed to conduct adequate checks on the origins, purpose, or background of the assets involved” in two high-risk business relationships.
Additionally, the bank permitted transactions exceeding $300m to be transferred from Lebanon to Switzerland and back to various accounts in Lebanon between 2002 and 2015 without sufficient oversight.
