Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 208

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 208
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 HSBC continues to enhance its control framework to detect, deter and disrupt money laundering, terrorist financing and proliferation financing more effectively, increasing its use of intelligence-led technologies to monitor customers for unusual or suspicious activity. HSBC has refreshed its processes and procedures to manage the risk of the bank's products and services being used for the purposes of tax evasion or bribery and corruption, whether by its customers or through its staff or third party engagements, which may expose HSBC to corporate criminal liability. HSBC seeks to comply with all applicable anti-bribery and anti-corruption laws in every market and jurisdiction in which it operates while focusing on the spirit of relevant laws and regulations, demonstrating HSBC’s commitment to ethical behaviours and conduct as part of our environmental, social and corporate governance. HSBC provides annual mandatory training on the prevention of money laundering, terrorist financing, proliferation financing, bribery and corruption and tax evasion to all staff and carries out regular monitoring and testing of its programmes to inform enhancements to the global financial crime policy on an ongoing basis. HSBC also maintains clear whistleblowing policies and processes, to ensure that individuals can report concerns confidentially. HSBC continues to develop its fraud controls in conjunction with areas such as cyber risk, to protect the bank and our customers; investing in capabilities to fight financial crime through the application of new technologies such as behavioural biometrics, advanced analytics and artificial intelligence. A comprehensive programme of customer awareness and staff training is in place to maintain strong anti-fraud awareness. HSBC continues to invest in enhancements to fraud prevention and detection tooling with leading vendors. Enhanced metrics are tracked closely to assist with control performance monitoring and support the ongoing optimisation of fraud defences. HSBC’s sanctions programme seeks to apply a globally consistent standard to manage sanctions compliance and export control risk effectively across all HSBC legal entities in all jurisdictions in which HSBC operates. The external sanctions environment remains dynamic, and sanctions regimes are increasingly complex and less predictable as geopolitical tensions continue to rise. Russia, and less so Belarus, have continued to be targeted by various trade and financial sanctions in 2024, with greater focus on enforcing sanctions and limiting methods of sanctions evasion and sources of Russian revenue. The US-China relationship remains complex, with both sides imposing sanctions and export restrictions. The US recently implemented an Outbound Investment Programme, which seeks to restrict / limit US Person investment in the non-publicly traded securities of Chinese, Hong Kong and Macau entities that engage in certain activity related to semiconductors and microelectronics, quantum information technologies or artificial intelligence, and the