HSBC forced to axe pay of top execs after failing to safeguard customers from financial crime


Profits plummet at Britain’s largest bank

HSBC has been forced to axe pay packages of its top executives in 2016 after it failed to meet demands by US regulators over safeguarding customers from financial crimes.

Britain’s biggest bank has reported a 62 per cent drop in profits and has said it is being investigated in the UK for potential money laundering offences.

In 2012, the bank was fined £1.2bn for weak anti-money laundering controls. This led to a monitor being posted to HSBC’s offices.

Stuart Gulliver, chief executive of HSBC, said: “Our monitor has raised certain concerns but we have continued to progress and our commitment remains unwavering. By the end of this year, we are on track to have our anti-money laundering and sanctions policy framework in place and to have introduced major compliance IT systems across the group”.