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UK regulator requires tighter compliance rules at HSBC after money laundering settlement

Britain's financial regulator says it is taking steps to force HSBC to improve its legal compliance after the bank agreed to pay $1.9 billon to settle a U.S. money laundering probe.

The Financial Services Authority said Tuesday that HSBC must establish a board committee with a mandate to oversee matters relating to anti-money laundering and terrorist financing.

It also said it has required HSBC to appoint a group money laundering officer approved by the regulator to ensure that the company complies with all anti-money laundering requirements.

HSBC agreed to a record settlement with U.S. authorities on Tuesday over a probe in connection with the laundering of money from drug traffickers in Mexico.

The U.S. government also alleges that HSBC intentionally allowed prohibited transactions with Iran, Libya, Sudan and Burma.