HSBC told to employ monitor to oversee compliance

LONDON (Reuters) - HSBC Holdings must employ an independent monitor to oversee its compliance with anti-money laundering and sanctions rules after admitting it failed to prevent the laundering of criminal cash, Britain’s financial regulator said.

HSBC was on Tuesday hit with a record $1.92 billion fine by U.S. prosecutors to settle a multi-year probe into failing to enforce anti-money laundering rules.

Britain’s Financial Services Authority said HSBC must also establish a committee of its board to oversee matters relating to anti-money laundering, sanctions, terrorist financing and proliferation financing and review its policies and procedures to ensure all parts of the bank are subject to standards equivalent to those required under UK requirements.

The FSA said it worked closely with the U.S. authorities and coordinated its actions with them.

Reporting by Steve Slater; Editing by Anthony Barker