HSBC was fined $537,683 by regulators in Hong Kong for disclosure lapses after an investigation by Hong Kong regulators.
Based on a joint investigation from the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority, the bank did not properly flag investment-banking ties with companies listed in Hong Kong in over 4,200 research notes issued between 2013-2021.
The case began as a self-report by HSBC and led to a combined probe by the two regulators.
Investigators said the shortcomings stemmed from weak mapping and data reporting across HSBC’s systems, which in turn meant required disclosures did not appear when research was published. Despite the control failures, the regulators said they had found no evidence that clients suffered losses as a result of the missing warnings.
HSBC, in a statement, called the breach “a historic matter” and said it has fixed the relevant controls and systems.
In 2019, Credit Suisse Limited along with Credit Suisse AG were fined by the SFC for a combined HK$2.8 million due to failure of disclosing relationships related to investment banking in research reports on securities listed in Hong Kong and issued between 2006 – 2016.
Separately, earlier in 2025, Hang Seng Bank, where HSBC has a 62% stake, received a fine of HK$66.4 over allegations of charging customers higher when selling products related to investments.
HSBC’s Swiss unit is removing wealthy clients in the Middle East
The Financial Times recently reported that the bank’s Swiss unit has begun removing over 1,000 wealthy clients from the Middle East.
People familiar with the move said the bank plans to end relationships with customers from countries including Qatar, Saudi Arabia, Egypt, and Lebanon. Many of those clients hold more than $100 million in assets.
The Swiss unit has told affected customers they won’t get to use the services, and letters suggesting they move accounts are due to go out soon, one person said. Bloomberg News first reported the changes.
HSBC continues to face scrutiny
The revamp follows actions by Switzerland’s financial regulator, Finma, over the bank’s handling of higher-risk customers. Last year, HSBC’s Swiss unit was disallowed from bringing in public figures due to new clients being found of money-laundering breaches.
The regulator concluded the bank had not carried out adequate due diligence on several transactions between 2002 – 2015, moving $300 million between Switzerland and Lebanon.
In its findings, the watchdog said HSBC had “failed to recognise the indications of money laundering presented by these transactions; it likewise failed to satisfy requirements for the initiation and continuation of customer relationships with politically exposed persons, and was thus in serious breach of its due diligence obligations.”
Finma ordered HSBC to conduct an anti-money-laundering review covering all high-risk relationships with politically exposed persons (PEPs). The bank, Finma said, cannot start new PEP relationships until the review is completed.
HSBC’s internal rules classify clients with more than SFr100 million ($124.7 million) as “high risk,” a label that triggers enhanced checks. The bank also factors in other elements, such as nationality, when assigning risk ratings to customers.
In a separate disclosure last month, HSBC said authorities in France and Switzerland are investigating the bank “in connection with alleged money laundering offences in respect of two historical banking relationships.”
Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
