HSBC has been fined for failing to protect billions of pounds of customer deposits
Fine: The Prudential Regulation Authority fined HSBC £57.4 million
HSBC has been fined nearly £60 million over “serious failings” over the way it protects billions of pounds of customer money.
The Prudential Regulation Authority (PRA) has fined the banking giant £57.4 million.
This was the second-largest fine imposed by the PRA, which is part of the Bank of England.
The regulator said HSBC had failed “over many years” to comply with deposit protection rules.
The authority said the size of the fine – reduced from £96.5 million due to cooperation – “reflects the seriousness of the failures” between 2015 and 2022.
Under the Financial Services Compensation Scheme (FSCS), customer deposits of up to £85,000 are protected.
Banks and building societies must put systems and controls in place to ensure vital information is correctly recorded so that the FSCS can make payments to savers in the event of a company going bankrupt.
Sam Woods, the Bank of England’s deputy governor for prudential regulation and chief executive of HACCP, said: “The serious failures in this case go to the heart of HACCP’s safety and soundness objective.”
“It is important that all banks fully comply with our resolution readiness requirements.”
He said HSBC had “failed significantly in its obligations in this area and failed to disclose its failures to us in a timely manner.”
But the banking watchdog said it did not believe HSBC’s breaches were “deliberate or reckless”.
HSBC – led by Noel Quinn since March 2020 – said it was “pleased that this historic matter has been resolved”.
“The CRA’s final notice acknowledges the bank’s cooperation with the investigation, as well as our efforts to fully resolve these issues,” the bank added.
It paid £1.5 billion in 2012 after a US Department of Justice investigation into money laundering by Mexican drug cartels.
(tags for translation) Daily Mail