HSBC has agreed to pay a $75 million settlement to the US Commodity Futures Trading Commission (CFTC) over charges related to manipulative and deceptive trading along with record-keeping failures at the bank.
The charges were levelled against three units of the bank: HSBC Bank USA, HSBC Bank Plc, and HSBC Securities. The regulator said that the three units admitted to charges related to record-keeping and supervision failures, agreeing to pay $30 million.
The bank’s US business meanwhile will pay an additional $45 million civil penalty for manipulative and deceptive trading in interest rate swaps and other financial products. The CFTC said that the charges were in connection with swaps, spoofing and record-keeping failures.
The CFTC’s order, which covers the period of March 2012 to April 2016, also found that in some instances bank supervisors were aware of the conduct with a senior manager directing the wrongdoing in one case.
HSBC did not admit or deny the charges. In comments to Reuters, a spokesperson for the bank said: "In recent years, we have made significant investments in enhancing our compliance procedures and have worked diligently to maintain the highest standards for professional conduct throughout our organisation.”
The news comes after HSBC was charged by the US Securities and Exchange Commission (SEC) for failing to stop staff from using their personal devices and third-party messenger apps like WhatsApp for work purposes. The bank agreed to a $15 million settlement.
Canada’s Bank of Nova Scotia was also charged with the same offence, and agreed to a $7.5 million fine.
Latest News
-
OpenAI and Stripe bring direct purchasing to ChatGPT
-
Visa launches new hub to boost AI in commercial payments
-
Lloyd’s partners with Ireland’s Department of Finance for InsurTech innovation
-
JPMorgan fraud case sees Frank founder Charlie Javice jailed for seven years
-
Moneybox scales homebuyer offering with First Mortgage partnership
-
Deutsche Bank completes first euro cross-border payment via blockchain
Data trust in the AI era: Building customer confidence through responsible banking
In the second episode of FStech’s three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech examines the critical relationship between data trust, transparency, and responsible AI implementation in financial services.
Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.
Beyond compliance: Building unshakeable operational resilience in financial services
In today's rapidly evolving financial landscape, operational resilience has become a critical focus for institutions worldwide. As regulatory requirements grow more complex and cyber threats, particularly ransomware, become increasingly sophisticated, financial services providers must adapt and strengthen their defences. The intersection of compliance, technology, and security presents both challenges and opportunities.
Unleashing generative AI: A force multiplier for financial crime teams
This FStech webinar, sponsored by NICE Actimize sees industry experts examine the revolutionary impact of generative AI on financial crime operations, and provides actionable insights to enhance your compliance strategies.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories