HSBC scandal

The HSBC scandal involved the bank failing to properly monitor and report suspicious transactions, which helped money launderers, drug cartels, and corruption schemes move funds secretly. Despite regulations requiring banks to detect and prevent illegal financial activity, HSBC was found to have loosened controls and ignored warning signs. This lack of oversight allowed illicit money to flow through their accounts undetected, raising concerns about compliance and promoting allegations of enabling criminal activities. The scandal led to substantial fines and prompted calls for stricter financial regulations and improved oversight within the banking industry.