HSBC Accused Of Fraud, Money Laundering, Forming Criminal Organization
CP | By Raf Casert, The Associated Press
Posted: 11/17/2014 10:58 am EST Updated: 11/17/2014
[image: The UK headquarters of HSBC at Canary Wharf in London. A
Belgian investigating judge has charged a Swiss private banking branch of
HSBC with massive organized fiscal fraud, money laundering and forming a
criminal organization to the benefit of over 1,000 wealthy clients that
cost the Belgian authorities]
<http://www.thecanadianpress.com/>
BRUSSELS - A Belgian investigating judge has charged a Swiss private
banking branch of HSBC with massive organized fiscal fraud, money
laundering and forming a criminal organization to the benefit of over 1,000
wealthy clients that cost the Belgian authorities "hundreds of millions of
euros."
The prosecutor's office said Monday the accusations against HSBC Private
Bank NV/SA are based on its involvement over the years with "wealthy
clients, specifically from the Antwerp diamond industry." It said the
justice ministry is also looking into possible money laundering.
In August, HSBC Holdings PLC said it knew inquiries were ongoing and that
the penalties "could be significant." On Monday, it said it had been
notified of the formal investigation by the Belgian judge. It said it was
also being investigated by French authorities.
HSBC, Europe's largest bank by market value, has had similar problems in
recent years. Two years ago, it agreed to pay a $1.9 billion fine in the
U.S. to settle a money-laundering probe. It faced accusations it
transferred funds through the U.S. from Mexican drug cartels and on behalf
of nations such as Iran that are under international sanctions.
The Belgian prosecutor's office said that in its case the private banking
branch is suspected of "promoting and encouraging fiscal fraud" by putting
offshore companies in Panama and the Virgin Islands at the disposal of
clients. It said the companies had no other purpose than to hide its
clients' assets.
It said the events under scrutiny range from 2003 until now. It said the
total sums involved could amount to "several billions of dollars."
The investigating judge will be calling on several leading officials and
staff for questioning. The bank said it "will continue to co-operate to the
fullest extent possible."
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With best wishes
S Chander
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