LONDON, Nov 7 (Reuters) - HSBC has been told by the
Bank of England to tighten up compliance controls for fraud,
staff conduct and other non-financial risks, a source close to
the bank said on Thursday.
Prudential Regulation Authority regulators had highlighted
the weaknesses and HSBC executives will discuss ways to
address them at a forthcoming meeting, the source told Reuters,
confirming an earlier report by Bloomberg.
Samir Assaf, HSBC's global banking and markets division
head, told senior bankers on a conference call on Tuesday of the
issue, said the source, adding the weaknesses had been
identified during routine regulatory work.
HSBC has been dogged by compliance problems, with the most
high profile scandal involving helping Mexican drug cartels
launder money, leading to a $1.9 billion U.S. settlement in
2012.
A Department of Justice deferred prosecution agreement ended
five years later, after HSBC invested hundreds of millions of
dollars in compliance measures.
The PRA compliance issue adds to HSBC interim chief
executive Noel Quinn's workload as he begins a costly overhaul
to address sluggish European and U.S. performances.
(Reporting by Iain Withers;
Editing by Alexander Smith)