The head of compliance at HSBC resigned on Tuesday after apologizing to U.S. lawmakers investigating lax rules that allowed money laundering at the British bank.

“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,” David Bagley told a Senate panel in Washington.

Mr. Bagley, who has served in the position since 2002, apologized for significant failures at the bank.

“Despite the best efforts and intentions of many dedicated professionals, HSBC has fallen short of our own expectations and the expectations of our regulators,” he said.