HSBC's $1bn 'money-laundering' apology

12 July 2012

HSBCBig cheeses at HSBC are going to face a Congressional committee next week. The US government are trying to stop banks moving money through countries including Iran, Cuba and Sudan. Basically, money is being laundered through the finance system, which is nice to know after the banks went power-mad and caused a recession, not to mention the whole Libor-rigging scandal.

HSBC are the only British bank with a network in America and there looks like there's going to be some huge fines handed out.

Stuart Gulliver, HSBC’s chief executive, told staff yesterday that “between 2004 and 2010, our anti-money laundering controls should have been stronger and more effective and we failed to spot and deal with unacceptable behaviour,” adding “it is right that we be held accountable and that we take responsibility for fixing what went wrong”.

HSBC have confessed that some of these investigations focus on historical transactions with “Iranian parties”. Basically, America and the EU are trying to make it difficult for Iran to fund its nuclear reactor programme. The Congressional committee said they will be using HSBC as a case study to look at “the money laundering and terrorist finance vulnerabilities created when a global bank uses its US affiliate to provide US dollars, US dollar services and access to the US financing system to high-risk affiliates, high-risk correspondent banks and high-risk clients”.

So there you have it. A bank, basically being accused of helping terrorism. That's nice isn't it?

TOPICS:   Banking


  • jt
    HSBC is a British bank? What does HSBC stand for?
  • Just m.
    HSBC Holdings plc (commonly known as HSBC) is a British multinational banking and financial services company headquartered in London, United Kingdom (Wikipedia)
  • foxes
    HongKong Shanghai Banking Corporation, I think. HongKong used to be British. Maybe they pay some tax in Britain - they have threatened to leave and stop being British if they get regulated so they government leave them alone.
  • james
    Nothing to do with The Hong Kong and Shanghai Banking Corporation Limited? HSBC are fukkerz and deserve to fail
  • Denny
    @james Sure, the safest bank in this country (except perhaps Standard Chartered for similar reasons to HSBC) deserve to fail ... that's bound to be good for all us! -- As for the money-laundering, the EU and Britain have for a long time had much looser rules about Iran and these other states than the politically-charged American rules. We may be a bit tighter now, but we haven't traditionally cared as much as they do, so it's no surprise to see British banks in trouble. This will all have happened with the knowledge of our leaders. Seriously, who in Britain will care whether Cuban money is passing through UK banks? They're not our mortal enemy! We don't have an long-standing, and pointless, embargo against them. Cuba is the destination du jour for our fine, upstanding middle-class travellers.
  • Sicknote
    HSBC are great and my property in Malta is mortgaged through them - I'll only call them fuckers if I move my business to another off shore bank.

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