HSBC hires Deloitte to review transactions, FT reveals

16 November 2010

HSBC has hired auditing firm Deloitte to help review the internal transactions of its US unit in connection to a money laundering probe, a newspaper has revealed.

According to the Financial Times, the auditing firm is being brought into analyse HSBC USA transactions worth millions of dollars to check that the banking division adhered to the correct rules surrounding compliance.

HSBC is under investigation by the US Attorney’s Office and the Department of Justice and has been ordered to set up an independent review by the regulators.

The bank, which was quoted by the news provider, said it was expecting to be subject to a formal enforcement action as part of the probe.

However, HSBC stated that it was “unable at this time to determine the terms on which it might be brought, the timing of any possible regulatory resolution or enforcement action or the amount of fines or penalties, if any, that may be imposed by the regulators or agencies”.

The bank received a “cease and desist” order from regulators earlier in the year after its lack of rules surrounding compliance were alleged to have created the potential for money laundering.

By Jim Ottewill

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