Deposit protection failures cost HSBC £57.4m
HSBC has been fined 57.4 million pounds by the Bank of England for serious failings in protecting customer deposits. The bank didn’t correctly identify deposits eligible for protection under Britain’s Financial Services Compensation Scheme. This scheme safeguards deposits up to £85,000. The Bank of England’s Prudential Regulation Authority (PRA) highlighted problems from 2015 to 2022. The bank also provided incorrect evidence regarding compliance with deposit protection rules. These failings significantly undermined the bank’s readiness for any restructuring. Despite the breaches, the PRA didn’t view them as deliberate or reckless. HSBC cooperated with the investigation, leading to a reduced fine of £57.4 million. The bank stated its commitment to serving customers. This is the second-largest fine imposed by the PRA, with Credit Suisse facing the highest fine of £87 million in July 2023. HSBC has faced previous penalties for anti-money laundering failings and money laundering violations in the past, including a $1.9 billion fine in 2012 from the US Department of Justice.