HSBC Australia Unit Faces A$35M Penalty for Scam Protection Lapses

HSBC's Australian unit faces a proposed A$35 million (US$23.3 million) civil penalty for failing to protect customers from scams. The Australian Securities and Investments Commission (ASIC) and HSBC Bank Australia Limited jointly proposed the penalty to the Federal Court today, June 18, 2026. The bank admitted to "systemic failures" in its scam detection and prevention systems between 2018 and 2023. ASIC highlighted that HSBC Australia failed to implement appropriate controls to identify and prevent scams, particularly those involving cryptocurrency investments. The bank acknowledged its systems were inadequate, leading to significant financial losses for some customers. The Federal Court will decide whether to approve the proposed penalty.