The Senate Permanent Subcommittee on Investigations put out a report earlier this week detailing ten years of HSBC failing to comply with regulatory measures. HSBC enabled drug lords to launder money in Mexico, did business with banks linked to Al Qaeda, and bypassed American sanctions against Iran.
Yesterday, HSBC officials testified before the Senate Homeland Security subcommittee. Officials from the bank apologized, but also said the internal problems that lead to such massive oversights had now been fixed.
The bank’s lax attitude toward compliance in Latin America first came to light in a Bloomberg Markets Magazine piece by Michael Smith.