The head of HSBC Holdings Plc's anti-money laundering programs used his opportunity to testify at a Senate hearing called to investigate risky practices at his employer, the Wall Street Journal reported Tuesday.

David Bagley's announcement before the Senate Permanent Subcommittee on Investigation follows accusations against the global banking giant that it gave drug cartels, criminals and terrorists access to the U.S. financial system by failing to guard against money laundering.

HSBC has fallen short of our own expectations and the expectations of our regulators, he sold lawmakers. As I have thought about the structural transformation of the bank's compliance function, I recommended to the group that now is the appropriate time for me and for the bank for someone new to serve as the head of group compliance.