--- title: Reuters Releases Report Detailing HSBC’s Deficient Policing of Money Laundering Risks description: Reuters Releases Report Detailing HSBC’s Deficient Policing of Money Laundering Risks --- [![Jacko Law Group, PC - Securities Law](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/brand.png)](http://www.jackolg.com/) Call Today for a Consultation San Diego 619-298-2880 San Francisco 415-766-3599 Los Angeles 213-631-2549 Menu [Contact](http://www.jackolg.com/Contact.shtml) - [Home](http://www.jackolg.com/) - [Firm Overview](http://www.jackolg.com/Firm-Overview/) - [Professionals](http://www.jackolg.com/Professionals/) - [Events](http://www.jackolg.com/Events.shtml) - [News](http://www.jackolg.com/News-Room/) - [Blog](http://www.jackolg.com/blog/) - [Videos](http://www.jackolg.com/Videos.shtml) - [Contact](http://www.jackolg.com/Contact.shtml) # Understand. Define. Achieve. Uniquely situated to offer comprehensive services to registered investment advisers, securities broker-dealers, hedge funds, financial professionals and organizations of all sizes. View Our Practice Areas - [SEC/FINRA Regulatory Counsel](http://www.jackolg.com/Regulatory-Examinations-and-Inquiries-SEC-and-FINRA/) - [Private Equity & Hedge Fund Counsel](http://www.jackolg.com/Private-Equity-Counsel/) - [Investment Adviser Services](http://www.jackolg.com/Legal-Considerations-for-Breaking-Away/Investment-Adviser-Counsel.shtml) - [Breakaways And Transitions](http://www.jackolg.com/Legal-Considerations-for-Breaking-Away/) - [General Corporate Counsel](http://www.jackolg.com/Corporate-Counsel/) - [Broker- Dealer Counsel](http://www.jackolg.com/Broker-Dealer-Counsel/) #### News - [Legal Tips](http://www.jackolg.com/News-Room/) - [Publications](http://www.jackolg.com/News-Room/Publications.shtml) - [Blog](http://www.jackolg.com/blog/) # Jacko Law Group Blog # Reuters Releases Report Detailing HSBC’s Deficient Policing of Money Laundering Risks Earlier this month Reuters issued a [special report](http://www.reuters.com/assets/print?aid=USBRE8420FX20120503) detailing confidential documents from investigations by two U.S. Attorney offices into violations by HSBC of the Bank Secrecy Act and other anti-money laundering laws. In April 2003 the Federal Reserve Bank of New York and New York state bank regulators ordered HSBC to do a better job of monitoring suspicious activity by its clients and customers. As a result, the bank allegedly improved its internal monitoring capabilities and hired a federal prosecutor to over-see its anti-money laundering activities. The documents uncovered by Reuters, however, indicate that these actions were merely window-dressing. In the years after the 2003 settlement with regulators, HSBC continued to violate anti-money laws by failing to adequately review “hundreds of billions of dollars in transactions for any that might have links to drug trafficking, terrorist financing and other criminal activity.” Reuters also reports that in addition to investigations by the U.S. Justice Department, HSBC is currently facing scrutiny by the Federal Reserve, the Office of the Comptroller of the Currency, the Manhattan District Attorney, the Office of Foreign Assets Control and the Senate Permanent Subcommitee on Investigations for its lack of adequate oversight. According to the reporters who reviewed the confidential documents, the Justice Department uncovered “anti-money laundering lapses of extraordinary breadth.” The reporters highlighted a number of specific shortcomings identified by the prosecutors, including: - Understaffing its anti-money laundering compliance division, including staffing the division with incompetent personnel; - Failing to review internal anti-money laundering alerts and failing to generate SARs on transactions that the bank’s internal monitoring systems picked up; and - Management intentionally deciding to not review alerts of suspicious activity and altering risk ratings on clients to avoid the detection of suspect transactions by the firm’s internal monitoring systems. The Reuter report highlights the need for adequate compliance policies in this highly regulated area. Perhaps more importantly, however, the investigations by regulators into HSBC’s conduct underscore the importance of implementing sufficient procedures and testing mechanisms to ensure anti-money laundering procedures are actually followed. For additional information about anti-money laundering laws and regulation, or any other compliance concern please contact Sarah Weber at sarah.weber@jackolg.com or (619)298-2880. ### Legal Tip Archive - [September 2011 (5)](https://resources.jackolg.com/archive/2011/09) - [April 2014 (5)](https://resources.jackolg.com/archive/2014/04) - [August 2014 (5)](https://resources.jackolg.com/archive/2014/08) - [September 2015 (5)](https://resources.jackolg.com/archive/2015/09) - [August 2011 (4)](https://resources.jackolg.com/archive/2011/08) - [October 2011 (4)](https://resources.jackolg.com/archive/2011/10) - [June 2012 (4)](https://resources.jackolg.com/archive/2012/06) - [July 2012 (4)](https://resources.jackolg.com/archive/2012/07) - [August 2012 (4)](https://resources.jackolg.com/archive/2012/08) - [October 2012 (4)](https://resources.jackolg.com/archive/2012/10) - [November 2012 (4)](https://resources.jackolg.com/archive/2012/11) - [January 2013 (4)](https://resources.jackolg.com/archive/2013/01) - [March 2013 (4)](https://resources.jackolg.com/archive/2013/03) - [April 2013 (4)](https://resources.jackolg.com/archive/2013/04) - [May 2013 (4)](https://resources.jackolg.com/archive/2013/05) - [June 2013 (4)](https://resources.jackolg.com/archive/2013/06) - [September 2013 (4)](https://resources.jackolg.com/archive/2013/09) - [October 2013 (4)](https://resources.jackolg.com/archive/2013/10) - [January 2014 (4)](https://resources.jackolg.com/archive/2014/01) - [February 2014 (4)](https://resources.jackolg.com/archive/2014/02) - [March 2014 (4)](https://resources.jackolg.com/archive/2014/03) - [May 2014 (4)](https://resources.jackolg.com/archive/2014/05) - [June 2014 (4)](https://resources.jackolg.com/archive/2014/06) - [July 2014 (4)](https://resources.jackolg.com/archive/2014/07) - [December 2014 (4)](https://resources.jackolg.com/archive/2014/12) - [January 2016 (4)](https://resources.jackolg.com/archive/2016/01) - [November 2011 (3)](https://resources.jackolg.com/archive/2011/11) - [December 2011 (3)](https://resources.jackolg.com/archive/2011/12) - [January 2012 (3)](https://resources.jackolg.com/archive/2012/01) - [February 2012 (3)](https://resources.jackolg.com/archive/2012/02) - [April 2012 (3)](https://resources.jackolg.com/archive/2012/04) - [May 2012 (3)](https://resources.jackolg.com/archive/2012/05) - [September 2012 (3)](https://resources.jackolg.com/archive/2012/09) - [December 2012 (3)](https://resources.jackolg.com/archive/2012/12) - [July 2013 (3)](https://resources.jackolg.com/archive/2013/07) - [August 2013 (3)](https://resources.jackolg.com/archive/2013/08) - [November 2013 (3)](https://resources.jackolg.com/archive/2013/11) - [December 2013 (3)](https://resources.jackolg.com/archive/2013/12) - [January 2015 (3)](https://resources.jackolg.com/archive/2015/01) - [February 2015 (3)](https://resources.jackolg.com/archive/2015/02) - [March 2015 (3)](https://resources.jackolg.com/archive/2015/03) - [July 2015 (3)](https://resources.jackolg.com/archive/2015/07) - [August 2015 (3)](https://resources.jackolg.com/archive/2015/08) - [November 2015 (3)](https://resources.jackolg.com/archive/2015/11) - [February 2016 (3)](https://resources.jackolg.com/archive/2016/02) - [March 2012 (2)](https://resources.jackolg.com/archive/2012/03) - [February 2013 (2)](https://resources.jackolg.com/archive/2013/02) - [October 2014 (2)](https://resources.jackolg.com/archive/2014/10) - [November 2014 (2)](https://resources.jackolg.com/archive/2014/11) - [April 2015 (2)](https://resources.jackolg.com/archive/2015/04) - [May 2015 (2)](https://resources.jackolg.com/archive/2015/05) - [June 2015 (2)](https://resources.jackolg.com/archive/2015/06) - [October 2015 (2)](https://resources.jackolg.com/archive/2015/10) - [December 2015 (2)](https://resources.jackolg.com/archive/2015/12) - [July 2011 (1)](https://resources.jackolg.com/archive/2011/07) - [September 2014 (1)](https://resources.jackolg.com/archive/2014/09) see all #### News - [Legal Tips](http://www.jackolg.com/News-Room/) - [Publications](http://www.jackolg.com/News-Room/Publications.shtml) - [Blog](http://www.jackolg.com/blog/) [Email Us For A Response](http://www.jackolg.com/Contact.shtml) #### How Can We Help? Email us to request more information or to schedule an appointment. **Bold** labels are required. #### Follow Us ON - [![Facebook](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/facebook.jpg)![Facebook](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/facebook-o.jpg)](https://www.facebook.com/pages/Jacko-Law-Group-PC/293111140703429)Facebook - [![Google Plus](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/google-plus.jpg)![Google Plus](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/google-plus-o.jpg)](https://plus.google.com/103406198138900359700/posts)Google Plus - [![LinkedIn](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/linkedin.jpg)![LinkedIn](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/linkedin-o.jpg)](https://www.linkedin.com/company/469106?trk=vsrp_companies_res_name&trkInfo=VSRPsearchId%3A1915712591417541495513%2CVSRPtargetId%3A469106%2CVSRPcmpt%3Aprimary)LinkedIn - [![Twitter](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/twitter.jpg)![Twitter](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/twitter-o.jpg)](https://twitter.com/JackoLawGroup)Twitter **San Diego Office** 1350 Columbia Street Suite 300 San Diego, CA 92101 [Map & Directions](https://maps.google.com/?q=Jacko+Law+Group,+PC+1350+Columbia+Street+Suite+300+San+Diego+CA+92101) Toll Free: 866-497-2298 Phone: 213-631-2549 Phone: 619-298-2880 Fax: 619-298-2882 **San Francisco Office** Four Embarcadero Center Suite 1400 San Francisco, CA 94111 [Map & Directions](https://www.google.co.in/maps/place/4+Embarcadero+Center,+San+Francisco,+CA+94111,+USA/@37.7950648,-122.3986392,17z/data=!3m1!4b1!4m2!3m1!1s0x808580613083aa1d:0x7e2bd59759260996) Phone: 415-766-3599 **Los Angeles Office** 535 N. Brand Boulevard Suite 279 Glendale, CA 91203 [Map & Directions](https://www.google.co.in/maps/place/535+N+Brand+Blvd+%23279,+Glendale,+CA+91203,+USA/@34.154319,-118.2576643,17z/data=!3m1!4b1!4m2!3m1!1s0x80c2c05300cb02e7:0xa610477ee4f38e64) Phone: 213-631-2549 © 2018 by [Jacko Law Group, PC](http://pview.findlaw.com/cmd/view?wld_id=4003514&pid=1). All rights reserved. [Disclaimer](http://www.jackolg.com/Disclaimer.shtml) | [Site Map](http://www.jackolg.com/Site-Map.shtml) [Privacy Policy](http://www.jackolg.com/Privacy-Policy.shtml) | [Business Development Solutions](https://www.lawyermarketing.com/?utm_source=FirmSite&utm_medium=footer%2Bcopyright&utm_term=law%2Bfirm%2Bmarketing&utm_campaign=FirmSite%2BInbound) by [FindLaw](http://www.findlaw.com/), part of Thomson Reuters.