The financial authorities in Britain decided to compel the country’s largest banks to pay a fine of 63.9 million pounds (85 million US dollars), as a punishment for his failure to track and prevent violations and financial crimes committed by his customers through the services he provides.
In the details published by the British media, and reviewed by “Al Arabiya.net” The Financial Conduct Authority (FCA) in London has decided The famous British bank (HSBC), which operates around the world, has been fined this amount as a punishment for “the failures over the course of eight years which led to the failure to detect terrorist financiers, modern slave traders and fraudsters”.
The authority revealed unusual flaws in the bank’s anti-money laundering systems within the UK, including one that meant a customer could increase spending activity by half a million per cent without a red alert flashing on their account.
According to the information, it turned out that for a while in 2011 all reports of suspicious activity in Wales were ignored by the bank’s computer systems, which meant that 89,000 unusual transactions were ignored by retail customers.
The authority found compelling evidence that the bank failed to notice suspicious activity on the account of a company manager who was later imprisoned for value-added tax fraud, and the bank failed to detect a cigarette smuggler who was also imprisoned.
The British newspaper, The Times, says that “the catalog of failures from 2010 to 2018 became embarrassing for HSBC, as many loopholes were found in the same system, which led to a record fine of $ 1.9 billion in the United States in 2012 after It turns out that the bank system helped the Mexican drug cartels launder money.”
Britain’s Financial Conduct Authority said the failures were particularly serious as the bank was notified in 2012 about potential vulnerabilities.
The fine comes days after Britain’s NatWest Bank was fined £265m for failing to stop a scheme to launder hundreds of millions of pounds worth of money, including cash in rubbish bags, which is deposited in dozens of branches.
The British authority said that HSBC failed to monitor and update the scenarios used by its automated systems to identify indicators of money laundering or terrorist financing, and failed to test and update information in those systems or verify the accuracy and completeness of raw data entered into those systems.
British media say the fine would have amounted to £91.4 million had it not been for the bank’s cooperation.