HSBC might face fines of around $1 billion by the US authorities and regulators for ineffective anti-money laundering controls, according to estimations in UK press.
The Financial Times said the flawed controls failed to ensure that the bank did not facilitate the financing of terrorism and other criminal activities.
The UK bank did not wish to comment on the potential $1 billion fine but said that it will testify before the Senate permanent subcommittee on investigations on 17 July.
"We will be discussing a number of compliance issues with members of the subcommittee, including past AML practices and in particular HSBC's remediation and resolution of compliance matters," the bank said in a statement.
Widespread media reports have cited an internal memo to staff ahead of the bank’s scheduled appearance in which Stuart Gulliver, chief executive, wrote: “Between 2004 and 2010, our anti-money laundering controls should have been stronger and more effective, and we failed to spot and deal with unacceptable behaviour.”