HSBC’s chief compliance officer resigned from his post during a US Senate hearing yesterday, following publication of a damning report alleging that Britain’s biggest bank may have inadvertently allowed the laundering of Mexican drug money.
David Bagley told senators that HSBC was transforming its compliance function. “I recommended to the group that now is the appropriate time – for me and for the bank – for someone new to serve as the head of group compliance,” he said.
Mr Bagley will, however, remain with the bank for a handover period.
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