HNAH, which is a subsidiary of the British bank HSBC, has agreed to the requests by the Fed and the Office of the Comptroller of the Currency.
Under the terms of the agreement, the bank now has 30 days to submit a detailed plan of how it will strengthen its compliance risk agreement.
In a statement, HNAH said: “These actions require improvements for an effective compliance risk management program across the company’s US business, including Bank Secrecy Act and Anti-Money Laundering compliance.”
The banking subsidiary has reorganized its reporting lines of communication in relation to its compliance program and increased investment in people, advisory services and systems surrounding compliance in response to the Fed’s request.
HNAH has also reduced its investment in areas which are not deemed central to its business.
HSBC Bank USA previously stated that HNAH was subject to an investigation by both US regulatory agencies and government bodies.
