HSBC ‘banned from taking on new assets at Saudi unit’ | GulfNews.com

HSBC ‘banned from taking on new assets at Saudi unit’ | GulfNews.com:



"HSBC Holdings Plc is blocked from taking on new funds at its Saudi Arabian asset management business after the regulator found that it breached local regulations, according to five people with knowledge of the matter.



The order from the country’s Capital Market Authority was made late last year and affects HSBC Saudi Arabia Ltd.’s $7 billion asset management arm, the people said, asking not to be identified as the notice wasn’t made public. HSBC Saudi Arabia must overhaul compliance procedures before the regulator will consider reversing the ban, according to two of the people.



The action by the CMA, as the Saudi Arabian regulator is known, relates to local rules and isn’t connected to other investigations, two of the people said. HSBC has been under scrutiny by regulators around the globe and paid a $1.9 billion settlement in 2012 to end US probes into money laundering. The bank paid $618 million in fines last year after an investigation into the rigging of foreign-exchange benchmarks."



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