HSBC Private Bank (Suisse) failed to carry out proper checks on high-risk accounts of politically exposed individuals, breaching money-laundering rules, according to Switzerland's Financial Market Supervisory Authority (Finma).
The high-risk transactions conducted between 2002 and 2015 by HSBC's Swiss private banking arm, totaling over $300m, involved funds originating from a government institution in Lebanon and were inadequately clarified and documented.
HSBC acknowledged the issues raised by Finma as historic, stating its commitment to anti-money laundering compliance, and plans to appeal the decision, refraining from further comments on the matter.
Finma found that until HSBC's Swiss private banking arm completes a full review and implements necessary measures, it is prohibited from engaging in new business relationships with politically exposed individuals, as part of the repercussions for breach of financial market law.
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