Since 2015 we have substantially improved our IT infrastructure to spot and analyse financial crime, investing USD1 billion in new and upgraded systems.
Our highly skilled IT professionals are building a single environment that takes all the data from our millions of customers worldwide and brings it together in an integrated way – helping us share information globally to manage financial crime risk effectively.
We are focusing our improvements on five areas:
Customer Due Diligence – understanding our customers better and assessing them for financial crime risk
Screening – checking customers and their transactions against relevant watchlists to spot for signs of financial crime, such as sanctions breaches
Monitoring – looking for unusual activity on customers’ accounts by understanding typical patterns of customer behaviour
Case management – enabling effective investigations of unusual activity
Exit management – making sure we have a consistent and auditable approach to end our relationship with customers HSBC does not want to do business with
investment in our IT systems since 2015
Customer Due Diligence is at the heart of how we manage financial crime risk. It helps us know our customers better so we can prevent criminal activity entering into our global financial system.
Our screening and monitoring systems help us spot the signs of financial crime, while case management helps us escalate when something is wrong.
In addition, we take a consistent approach to how we close relationships with customers that we no longer wish to do business with. This means that if we have closed an account for financial crime reasons in one market, that we also close any other accounts held by that customer in other markets.
HSBC is constantly striving to improve the way we detect and prevent financial crime and explore technologies that help us build on existing capabilities. Fighting financial crime is a key area that can benefit from innovation and we’re always looking to invest in financial technology (fintech) firms that can help us achieve this.
It is not just about implementing systems, HSBC employees need to use their judgement and speak up when they see something that does not add up. That’s why we are investing in employee training and creating the right culture.
HSBC has made significant progress in upgrading our ability to fight financial crime.
Working in partnership is vital to understand and tackle financial crime.