Swiss regulator finds HSBC violated money laundering rules

HSBC Private Bank SA breached its obligations in the prevention of money laundering in connection with two politically exposed persons and thereby seriously violated financial market law. This was established in the context of enforcement proceedings by the Swiss Financial Market Supervisory Authority FINMA, which has imposed measures to ensure that compliance with the law is restored. The decision orders that, until these measures have been implemented in full, the bank may not enter into any new business relationships with politically exposed persons. FINMA has ordered the bank to conduct a review, with regard to anti-money laundering aspects, of all the current high-risk business relationships and business relationships with politically exposed persons. It must also check the correct categorization of the risks presented by its other customers. An audit agent will monitor the implementation of these measures on site on an ongoing basis and will submit a report to FINMA. The bank may not enter into any new business relationships with politically exposed persons until such time as completion of the reviews has been confirmed by the audit agent. In addition, HSBC Private Bank (Suisse) SA must issue FINMA with a comprehensive presentation of the responsibilities within its board of directors and executive management as well as details of how they are assigned. The decision has not entered into force.