HSBC is to apologise US lawmakers for failing to have appropriate controls in place to ensure that it did not facilitate the financing of terrorism and other criminal activities, transgressions that analysts estimate may cost it up to $1bn in fines.
HSBC said in its 2011 annual report that fines relating to money laundering issues could be "significant". There has been speculation among analysts that bank could hit with a higher charge than the $619m ING, the Dutch bank, agreed to pay to settle accusations it violated US sanctions by helping Iranian and Cuban companies to move billions of dollars through the US financial system. Some have suggested it could be as much as $1bn.
HSBC is expected to provide details of the changes it has made to strengthen its compliance and risk-management controls.