London-based HSBC is setting up a new committee known as the “the Financial System Vulnerabilities Committee”, to supervise governance, omission and policy guidance, anti money-laundering systems and controls.
Commenting on the new establishment, HSBC CEO Stuart Gulliver said, "The new committee, which will benefit from the experience of the expert advisers, will provide invaluable guidance and advice as we strengthen our capabilities and enforce the highest standards, in particular in relation to combating financial crime."
Independent advisers include Bill Hughes, Nick Fishwick, Dave Hartnett, Leonard H Schrank, and Honorable Juan C Zarate, who will ensure proper functioning of the working group.
Rona Fairhead will serve as the chairman of the group risk committee, while Sir Simon Robertson as deputy chairman and senior independent director.
The committee will offer governance, oversight and policy guidance over HSBC’s framework of controls and procedures designed to prevent anti money-laundering, tax avoidance, and terrorist financing.
It will also supervise the system for prevention of association with illegal drugs activities; application and enforcement of financial sanctions; intelligence with all of the above for emerging threats; and effective relationships with governments and law enforcement agencies.
The move follows after the bank was penalized approximately $2bn by the US regulators over Mexican money laundering and various sanctions violations.