Hongkong and Shanghai Banking Corporation (HSBC) has been fined $33 million by a US regulator for past failings concerning the administration of some bank accounts, and ended business restrictions it had placed on the bank due to the problem, according to a Reuters report.
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The Office of the Comptroller of the Currency (OCC), which oversees leading national banks, imposed the penalty on HSBC for failing to correct deficiencies in the way it administered payment change notices on some accounts.
The OCC first issued an order for the bank to change its practices back in 2011 after the bank exhibited what it termed “unsafe and unsound practices” in the way it informed customers about changes in mortgage payments.
HSBC has also come under fire by a further global regulator in recent times, as reported by Finance Magnates. Hong Kong’s Securities and Futures Commission (SFC) reprimanded and fined the lender $2.5 million last September for regulatory breaches and internal control failings related to position limit failures, following an investigation into the holding of open positions by HSBC in Hang Seng China Enterprises Index futures and options contracts.