HSBC Official Resigns Over Drug Money Scandal

The head of compliance at HSBC has resigned from his position and apologised after a US senate investigation found that Mexican drug cartels laundered billions of dollars through its US division.

David Bagley told the senate investigations panel on Tuesday that he will remain at the London-based bank in a new role.

Other HSBC executives also apologised at the hearing, which focused on the bank’s lapses. But all said they weren’t fully aware of illicit transactions flowing through the bank.

The executives said the bank has made deep changes to its policies and corporate culture to prevent further exposure to illegal transactions.

But senators expressed skepticism. They noted that the problems persisted for seven years.

Irene Dorner, president and CEO of HSBC Bank USA, said in testimony prepared for Tuesday’s hearing by the Senate Permanent Subcommittee on Investigations that “we deeply regret and apologise” for the lapses by HSBC.

Read the whole story: Aljazeera