HSBC Unit Ordered To Boost Risk Management

Law360, New York (October 7, 2010, 6:35 PM EDT) -- A U.S. subsidiary of HSBC Holdings PLC has been handed a cease-and-desist order instructing the bank to bolster a firmwide compliance risk management program in the wake of a regulatory probe for possible violations of anti-money laundering requirements.

The U.S. Office of the Comptroller of the Currency said Thursday the Federal Reserve System had issued the order against McLean, Va.-based HSBC Bank USA NA for violating the Bank Secrecy Act and its underlying regulations.

The order requires the bank to take “comprehensive corrective actions” to improve...
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