The U.K. Financial Conduct Authority fined HSBC, Britain's largest lender by assets, £64 million Friday for allowing "key" transaction-monitoring deficiencies to persist from 2010 to 2018 despite several internal warnings and intense government scrutiny. In a 51-page notice, the regulator accused HSBC of failing to assess whether the six sets of automated rules that the bank adopted in 2002 to screen hundreds of millions of transactions each month incorporated certain key "risk indicators"—factors that suggest illicit finance—from 2010 to 2014. Risks that the London-headquartered bank faced in the U.K. but did not begin developing into transaction-monitoring scenarios until 2014 include...
The Financial Conduct Authority of the United Kingdom imposed a financial penalty on the London-based financial institution due to weaknesses in its transaction monitoring systems.
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