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Leaked Details of HSBC Accounts Draw Ire from Officials
By Kira Zalan, Colby Adams and Irene Madongo
printLondon-based HSBC Holdings Plc could find itself paying more to rectify past compliance problems following disclosures this week about the bank's services for clients with criminal ties, according to analysts. On Sunday, the International Consortium of Investigative Journalists (ICIJ) and a raft of newspapers said that HSBC's private banking arm in Switzerland knowingly maintained accounts for thousands of wealthy individuals possibly committing tax evasion, including clients linked to arms traffickers, terrorist groups and drug cartels. The reports cited internal documents leaked by Herve Falciani, a former IT employee who worked for the bank in Switzerland and downloaded the data in...
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U.S. officials told an appellate court on Thursday that plans to unseal a report on HSBC's anti-money laundering efforts since 2012 could undercut future efforts to police the financial sector.
The axe may be falling on up to 50,000 positions at HSBC Holdings Plc but at least one department seems sheltered from the cost-cutting measures: the bank's compliance team.
British lawmakers Monday sharply criticized HSBC’s leadership for failing to prevent widespread tax evasion by clients and take responsibility for the institution’s compliance lapses.
Facing parliamentary criticism, HSBC's top executives conceded Wednesday to "unacceptable" failures of its Swiss private banking unit that led to likely account abuses and subsequent reputational damage.
The U.K. is considering a money laundering investigation of HSBC's Swiss operations in light of recent allegations that the bank maintained accounts for financial criminals, a British official said Wednesday.
Russian banks hit with expanded U.S. sanctions say the measures will have little impact on their business, Fintrac released two separate fines against MSBs for AML deficiencies, and more, in the midweek roundup.
HSBC Bank USA will seek a new chief compliance officer after the departure of the executive who filled the role for over two years.
U.S. lawmakers called for testimony from federal investigators Thursday as part of an effort to push for more aggressive punishment of individuals and financial institutions that aid money launderers and sanctions dodgers.
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Criticism of the U.S. Justice Department's apparent decision to forego indictments of HSBC and its employees misses a larger point: the department probably couldn't have won convictions if it tried, say prosecutors.
The U.S. government's landmark case against HSBC Holdings Plc for knowingly turning a blind eye to financial crime is seemingly fated to end much as it began: complex and messy.
Expected criminal and civil settlements over anti-money laundering lapses will likely cost HSBC Bank USA $1.5 billion or "significantly" more, the financial institution said in a regulatory filing Monday.
Most news accounts of Tuesday's U.S. Senate inquiry into HSBC Holding Plc's compliance failings led with the bank's anti-money laundering compliance chief's announced resignation before lawmakers. But what he meant, it turns out, is that he is only taking another job inside the bank.
HSBC Holdings Plc will close all of its U.S. accounts in the Cayman Islands after a congressional investigation found that the Caribbean branch functioned solely as a dollar-clearing shell bank.
Poor anti-money laundering controls on affiliates and problematic oversight allowed a global bank to process tens of trillions of dollars with little to no compliance checks, according to a U.S. Senate subcommittee.
U.S. senators will question representatives from HSBC Holdings Plc and its financial regulator next Tuesday over the findings of an unreleased report outlining concerns about the bank's anti-money laundering compliance program.
Even prior to the disclosure last month by HSBC Holdings Plc that it would "likely" be the subject of a formal enforcement action related to anti-money laundering (AML) and other violations, things did not look good for the bank, according to Saskia Rietbroek, a partner with nomoneylaundering.com.
As pressure mounts against HSBC Holdings for purported widespread violations of U.S. regulations, the U.K.-based bank may find it has little wriggle room to negotiate itself out of a costly settlement, say analysts.
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