The HSBC group have admitted that they violated the Bank Secrecy Act (BSA), the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA). The bank did not ensure that their anti-money laundering program was effective.
Answer:
The correct answer is: fraud and financial misconduct.
Explanation:
In 2012, HSBC Holdings plc agreed to pay U.S. authorities a record $1.92 billion in penalties after admitting fraud and financial misconduct because of being used as a money laundry from drug-related Mexican activities. This is a breach of ethics in which bank officials and staff consider themselves guilty of having millions of dollars worth of trafficking in drugs.
