Jul 18, 2012

How Much Will Mexico Money Laundering Cost HSBC?

Forbes: Earlier this year, on February 27, 2012 HSBC Holdings Plc announced that it will likely face criminal or civil charges from an expanding U.S. Department of Justice investigation into its alleged ties to suspicious money transactions. Investigators are looking into the banks’ dealings in Mexico.

Today, July 17, executives from HSBC, one of the world’s largest banks, are expected to testify before a U.S. Senate Committee regarding questions about how lax controls may have allowed money launderers to take advantage of HSBC’s services. Read more.

HSBC gave its lowest risk rating to Mexico between 2000 to 2009 even though the country was in high-risk for drug trafficking and money laundering. In 2007 and 2008, HSBC's Mexican bank shipped $7 billion in cash, likely supplied by the illegal drug trade.

Bloomberg News: HSBC Executive Resigns at Senate Money Laundering Hearing
HSBC Holdings Plc (HSBA)’s head of group compliance, David Bagley, told a Senate hearing he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Read more.

No comments:

Post a Comment