FORMER MI5 CHIEF TO HELP HSBC CLEAN UP ITS ACT – After being fined £1.25 billion for engaging in money laundering activities for terrorists and drug barons, HSBC hires Sir Jonathan Evens, former head of MI5 to sort out is security breaches.
Full Story: daily mail
Are the banks doing enough to prevent terrorists and drug lords from laundering money? Have your say… leave your comments below.
Just six months all HSBC was found guilty of money laundering practices for terrorist organization and drug cartels. The investigation uncover a catalogue of mistakes which resulted in HSBC being fined £1.25 billion and ordered to implement security and systems improvements to ensure its accounting practices could identify an attempt to launder money.
HSBC has now recruited the former chief of MI5, Sir Jonathan Evens, in which he will be responsible for analysis the banks financial systems, identifying weak spots and providing recommendations on amending these.
Sir Jonathan has become a non-executive director at HSBC for a period of 3 years with an annual salary of £125,000; a modest salary compared too many executives in the banking industry.
“His experience and expertise gained from a career at the highest level of public service combating threats to data security, critical infrastructure and from international terrorism and organised crime will be of considerable value to the board as it addresses its governance of systemic threats.” Chairman Douglas Flint
Sir Jonathan certainly has the credentials to make an impact, with 33 years in security and in particular counter cyber-terrorism and other online threats.
HSBC appear to be taking the situation of money laundering seriously; it was shortly after the fine that HSBC chief executive Stuart Gulliver announced that the HSBC would be at the forefront of fighting financial crime and announced shortly afterwards the setting up of the Financial Systems Vulnerabilities Committee; in which Sir Jonathan Evans will also be a member.
While many will appreciate the efforts HSBC is going to in order to weed out the internal systems and fill in cracks and holes; you have to ask ‘why’ this was allowed occur in the first instance.
I am, and always will remain, highly suspicious of our banking systems – it just appears that all too often our banks and thrust in the limelight with reports of continuous shading dealings which result in top bankers being awarded massive payouts and bonuses.
While the HSBC was fined £1.25 billion I feel the banking executives are complacent, after all it’s not their money. Banking chiefs need to be held more accountable for their banks activities and it is high time that many saw the inside of a prison cell so that they could truly contemplate the error of their ways.