HSBC receives U.S. government backing to not release money laundering report

The U.S. government asked a federal appeals court on Thursday to block the release of a report detailing how HSBC is working to improve its money laundering controls after the bank was fined $1.92bn.

Reuters reports that in a brief filed with the 2nd U.S. Circuit Court of Appeals, the U.S. Department of Justice sought to overturn an order issued earlier this year by U.S. District Judge John Gleeson to make public a report by the bank's outside monitor.

"Public disclosure of the monitor's report, even in redacted form, would hinder the monitor's ability to supervise HSBC," the government's court filing said, adding that bank employees would be less likely to cooperate with the monitor if they knew their interactions could be released.

HSBC concurred with the court's finding. "HSBC also argues that the Monitor's report should remain confidential, as have the Monitor, the UK Financial Conduct Authority, the US Federal Reserve and other HSBC regulators," HSBC said in a statement. "The effectiveness of the monitorship is dependent on confidentiality."

To access the complete Reuters article hit the link below:

U.S. sides with HSBC to block release of money laundering report

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