Monitors of HSBC’s anti-money laundering and sanctions evasions found “widespread compliance failings” at the bank’s Bermuda operation, The Wall Street Journal reported yesterday.

The newspaper said that “people familiar with the situation” said that the problems found in 2015 helped lead to the departure of the HSBC’s CEO Richard Moseley and chairman Philip Butterfield, who both left the bank last year.

HSBC had to put a monitor in place as part of a $1.9 billion settlement with the US Justice Department in 2012.

The bank paid the cash to settle allegations it had failed to spot drugs money laundering in Mexico and failed to flag up transactions with countries subject to economic sanctions like Iran.

The deal with the US authorities included a five-year deferred prosecution agreement, after which the Justice Department will decide whether the bank has come up to standard or whether it should be prosecuted.

The US could also opt to extend the monitoring or even strip the bank of its licence to bank in the US.

HSBC Bermuda declined to comment on the Wall Street Journal claims.

But a spokeswoman said: “HSBC remains focused on fulfilling its obligations under the deferred prosecution agreement and implementing the most effective standards globally to combat financial crime.”