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HSBC Holdings PLC (HBC) is expected to make a $200 million provision for costs after the bank came under scrutiny for failing to combat money laundering in its U.S. operations, the Sunday Telegraph reported.

The charge, the first to be taken by the British bank in relation to the failings of its U.S. business, is likely to be among several increased provisions as it reports on Monday its half-year results for the six months to the end of June, according to the paper.

The bank is expected to increase the amount of provisioning for the payment protection insurance mis-selling scandal by a further 100 million pounds in the second quarter, the paper said without citing sources.

A spokesman for HSBC declined to comment on the report.

Newspaper Web site: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9434469/HSBC-set-to-take-200m-hit-on-US-money-laundering-scandal.html

-London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320

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