The head of compliance at HSBC resigned Tuesday after apologizing to US lawmakers investigating money laundering at the British bank, dpa reported. David Bagley told a Senate panel in Washington that he would resign, in his testimony to a hearing outlining a report that said lax rules at HSBC allowed Europe's largest bank to serve Mexican drug cartels as a conduit for money laundering, helped firms skirt sanctions on Iran and opened the US financial system to entities linked to terrorism. "As I have thought about the structural transformation of the bank's compliance function, I recommended to the group that now is the appropriate time, for me and for the bank, for someone new to serve as the head of group compliance," Bagley said. Bagley, who has served in the position since 2002, apologized for significant failures at the bank.
