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OCC, Fed Penalize HSBC USA for ‘Systemic’ Problems
By Brian Monroe
printThe U.S. Treasury Department and the Federal Reserve issued separate enforcement actions Thursday against HSBC North America Holdings Inc. for systemic Bank Secrecy Act compliance violations. The department's Office of the Comptroller of the Currency (OCC) and the Fed issued cease-and-desist orders against the company's McLean, VA-based HSBC Bank USA. The actions precede an expected U.S. Justice Department fine against the bank that could reach as high as $500 million, according to individuals familiar with the matter. The violations cited Thursday included poor suspicious activity monitoring, independent testing and customer due diligence, including with accounts tied to politically exposed persons...
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