Fines?? I expected the US Senate to be handing out medals! This part of the story says it all: "London-based HSBC, Europe's largest bank" - this is nothing more than envy at the Chinese for becoming the single global super-power in finances. China is basically holding promissory notes from most major economies in the world.
 
The US Senate issues fines to HSBC for not being up-to-date with AML policies, yet did nothing but hand out more money to Wall Street CEOs between 2007-2009, while knowing full well that it was the Wall Street CEOs that caused this global financial meltdown which caused the USA to look to China for a bailout.
 
The US Senate is biting the hand that feeds it, I wont be surprised if China buys Washington, D.C. next - it already owns New York!!

I work in the financial industry and I assist my company's clients open bank accounts around the world. Aside from Singapore, Dubai and Luxembourg, some banks here in Cayman (RBC to name one) make it very time-consuming and difficult to open an acccount due to the onerous due diligence that is requested.

Unfortunately, the world still sees Cayman as a place of money laundering and easy manner of shipping dirty money in and out.  But the reality is, it's not easy by far if the institution has the proper AML practices in place.

I have a few accounts here in Cayman. the easiest to open, who requested the least amount of documents and paperwork was "ta-da" HSBC.
So the whole thing really doesnt surprise me one bit.

The Compliance culture within the Cayman Financial Services industry has some very serious weaknesses. Compliance with the requirements of applicable Laws and Regulations, is seen as a necessary evil, a Cost Centre, and a bloody nuisance. KYC / Due Diligence policies and procedures for new customers, and ongoing future monitoring tends to be robotic and follows the " laundry list " of steps mandated by CIMA - there is frequently no "thinking outside the box ". CIMA must find some way of persuading companies that failures in their compliance programmes do not just lead to regulatory sanctions, fines payable by the company and it's directors / officers, but also massive reputational damage to themselves and, MORE IMPORTANTLY, Cayman .Whilst we were never going to completely shake off the Wild West money laundering image of the 70/80's , which was justifiable, we did not need that skeleton dragged back out of the closet with such a clatter. The HSBC debacle has set us back a couple of decades. CIMA has to become far more pro-active in training Compliance professionals, and monitoring what sort of business it is meant to be regulating.

As the saying goes, " A day late and a dollar short."
Following on from your earlier story about CIMA regulating $1.7 trillion this is all a joke. CIMA couldn't organise a Christmas party even if it was catered. Let's stop the pretence of regulation and oversight because it isn't happening.

Cayman's reputation has been damaged by HSBC's actions. Mexico has fined them. If CIMA fails to fine HSBC then it will appear to the world that Cayman condones this type of misuse of our banks in our jurisdiction. 
 
 
 

What?
Corruption and organized crime in Mexico?
Say it isn't so...
Next you're going to tell nme they want to levy income taxes in the Cayman Islands!