(The following is a reformatted version of a statement issued by
the U.K. Financial Services Authority and received via
electronic mail. The statement was confirmed by the sender.) 
11 December 2012 
FSA requires action of the HSBC Group 
The Financial Services Authority (FSA), as lead regulator for
the HSBC Group globally, is taking action in relation to issues
in respect of HSBC’s compliance with anti-money laundering rules
and US sanctions requirements. The FSA has worked closely with
the relevant US authorities and this action is separate to, but
coordinated with the actions taken by them. 
The FSA has made a number of requirements of HSBC Holdings plc
which are designed to ensure that all parts of the HSBC Group
are in compliance with the relevant legal and regulatory
requirements across the Group to prevent similar failings
occurring in the future. The FSA requires HSBC Holdings to: 
Establish a committee of the HSBC Board with a mandate to
oversee matters relating to anti-money laundering, sanctions,
terrorist financing and proliferation financing; 
Review relevant Group policies and procedures to ensure that all
parts of the HSBC Group are subject to standards equivalent to
those required under UK requirements; 
Appoint a Group Money Laundering Reporting Officer (MLRO) who
will be an FSA approved person, with responsibility for ensuring
that systems and controls are in place across the Group, to
ensure the Group is in compliance with all relevant legal and
regulatory requirements; and 
Employ an independent monitor to oversee the Group’s compliance
with UK anti-money laundering, sanctions, terrorist financing
and proliferation financing requirements and to provide
independent reporting to the HSBC Board committee and
Through its supervision, the FSA will take steps to ensure that
HSBC complies with these measures. 
These measures are in addition to the requirements of the Cease
and Desist order issued by the Federal Reserve Board and the
Deferred Prosecution Agreement issued by the US Department of
Justice on 11 December 2012. 
Chris Hamilton
020 7066 3230 
Outside office hours
07795 351 956 
FSA Consumer Helpline
0845 606 1234 (call rates may vary) 
Website:          www.fsa.gov.uk 
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