HSBC has been hit with a £63.9m fine for failing to identify criminal activity.
The Financial Conduct Authority (FCA) issued the fine after finding 'serious weaknesses' across HSBC's automated systems.
The systems are used to monitor hundreds of millions of transactions a month to identify criminal activity.
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The FCA found three key failings in the systems over eight years from March 2010 to March 2018.
One of these failures include scenarios used until 2014 to identify money laundering and terrorist financing as well as a 'poor' risk assessment of new scenarios after 2016.
The FCA also found failures to 'appropriately rest and update the parameters' of the bank's systems.
HSBC was also found to fail to properly check the accuracy and completeness of the day being fed into its monitoring systems.
The bank agreed to settle the fine at the earliest opportunity which has resulted in the fine being reduced from its original £91m.
Mark Steward, executive director of enforcement and market oversight at the FCA, said: "HSBC's transaction monitoring systems were not effective for a prolonged period despite the issue being highlighted on numerous occasions.
"These failings are unacceptable and exposed the bank and community to avoidable risks, especially as the remediation took such a long time.
"HSBC continued their remediation to address these weaknesses after the relevant period.”
An HSBC spokesman said: "We are pleased to resolve this matter, which relates to HSBC’s legacy anti-money laundering systems and controls in the UK.
"As is well known, in 2012 HSBC initiated a large-scale remediation of its financial crime control capabilities.
"More recently, as the FCA recognised, HSBC has made significant investments in new and market-leading technologies that go beyond the traditional approach to transaction monitoring.
"HSBC is deeply committed to combating financial crime and protecting the integrity of the global financial system."
