Was HSBC involved in money laundering?
‘The world’s local bank’ Founded in Hong Kong as the Hong Kong and Shanghai Banking Corp. in 1865, HSBC prospered managing British government accounts across East Asia. Instead, the bank took part in one of the most notorious episodes in money laundering history.
When was the HSBC money laundering scandal?
The team of almost 300 lawyers and accountants had begun its work in 2013, after HSBC agreed to pay $1.9bn in fines – a record at the time – for allowing drug traffickers to funnel at least $881m through its accounts in one of the most high-profile money laundering scandals in a decade.
How does HSBC launder money?
HSBC pays $1.9bn (£1.3bn) and signs a deferred prosecution agreement with the US Department of Justice after it was found to have violated US sanctions and admitted its accounts were used to launder money for criminal networks, including $881m for Mexican drug cartels.
What happened to HSBC?
British bank HSBC Holdings PLC announced Wednesday that it will sell most of its retail locations across the U.S., reducing 148 branches down to 58 and winding down an additional 35 to 40 branches. The remaining locations will be repurposed into international wealth management centers.
Why did HSBC leave us?
The U.S. commercial banking business generated just 2.03% of the group’s 2020 net operating income. HSBC CEO Noel Quinn in a statement announcing the exit admitted that the bank “lacked the scale to compete” in the U.S.
What was the HSBC fine for money laundering?
In 2012, HSBC Holdings’ agreement to pay a $1.9 billion fine points to a lack of adequate control processes in compliance and anti-money laundering. HSBC provided money-laundering services of more than $881 million to various drug cartels including Mexico’s Sinaloa cartel and Colombia’s Norte del Valle cartel.
Why are HSBC shares falling in Hong Kong?
A huge leak of secret files suggested that the high street lender facilitated the transfer of money around the world even after it became aware of the scam. The latest allegations to be levelled at the bank, which has been caught in a series of damaging financial scandals over recent years, sent the shares tumbling in Hong Kong and the City.
Who are the banks involved in money laundering?
Meanwhile HSBC, which has its global headquarters at Canary Wharf, was named as one of five global banks that allegedly allowed fraudsters to move money between accounts knowing that the funds were generated through criminal activity. The others were JPMorgan Chase, Standard Chartered, Deutsche Bank and Bank of New York Mellon.
When was HSBC fined for foreign exchange rigging?
Nov 2014: HSBC pays US and UK regulators $618m when it is one of six banks fined a total of $4.3bn for their involvement in a foreign exchange rate-rigging scandal. Feb 2015: The full extent of the Falciani leaks are exposed in the media.
