http://www.dividend.com/news/2018/04/13/trending-penalty-hit-hsbc-spot-money-laundering/
HSBC Holdings (HSBC ), the company yielding an impressive dividend of 8.6%, has seen its viewership rise 40% this the past week.
HSBC, which posted rather disappointing performance in past years, although in line with the entire financial industry, recently said it wants to employ artificial intelligence to battle money laundering. Instead of an army of compliance workers verifying suspicious transactions, HSBC enlisted the help of U.K. startup Quantexa, the software of which will help screen vast amounts of data and compare it with publicly available data to identify dodgy transactions.
By using artificial intelligence, the company expects to save money on compliance while becoming more effective at spotting nefarious dealings. HSBC has been particularly affected by suspicious transactions, receiving billions of fines in the past year for failing to stop money laundering.
The company’s stock price has dropped nearly 6% since the beginning of the year, although it is up more than 3% in the past five days. HSBC has underperformed its peers in recent years, in no small part due to the penalties it incurred for processing transactions linked to criminal activities.