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HSBC reported to face criticism on lapses in Mexico

Monday, July 16, 2012

The failure by HSBC Holdings failure to implement adequate money-laundering controls in Mexico is among lapses that US Senate investigators will criticize tomorrow, according to two people briefed on the matter.

HSBC bought Grupo Financiero Bital in 2002, pumping $800 million into the Mexico City-based bank to meet capital standards.

Money-laundering controls were largely absent in HSBC’s operations there in ensuing years, said the people, who requested anonymity because the findings of the Senate’s Permanent Subcommittee on Investigations aren’t yet public.

Source: Bloomberg