Reporter chad bouchard wrote an excellent piece covering tuesdays hsbc hearing in the senate permanent subcommittee on investigations. A senate report released ahead of the embargo time revealed that hsbcs lax antimoney laundering policies allowed mexican drug money, iranian. During the course of its investigation into hsbcs aml deficiencies, the subcommittee issued multiple. Hsbc allowed money laundering, senate says marketwatch.
The report does not detail enforcement action taken, though there are several likely fines being. A hardhitting us senate investigation has concluded that hsbc, europes largest bank, ignored warning signs that its global operations were being used by money launderers and potential terrorists. It points to the problems at hsbc, europes largest financial institution, as indicators of a broader problem of illegal money flowing through international financial institutions into the united states. Hsbc declined to comment on the possibility of a new investigation in britain, but assured that the bank will cooperate with all relevant bodies. Londonnew york, july 20 thomson reuters accelus the united states senate permanent subcommittee on investigations has published a report into u. The report is the product of a yearlong investigation by a senate subcommittee, the permanent subcommittee on investigations. Hsbc case history majority and minority staff report permanent subcommittee on investigations united states. Failure after failure at hsbc led to the londonbased bank being used as a conduit for drug kingpins and rogue nations, a 300page report compiled for a us senate committee has found. Irene dorner, president and chief executive officer, hsbc bank usa. Encumbrances set out on schedule a attached to this final report and opinion. Hsbc holdings plc is under investigation by a senate panel in a moneylaundering inquiry, the latest step in a longrunning u. Hsbc failed to act on money laundering, says us senate. A yearlong investigation by a senate subcommittee produced the report, which turned up evidence that hsbc had willingly turned a blind eye to shady activities carried out under its purview.
I tried using the pdf reader gem and the pdf2ps and ps2ascii command line tools to extract the text from the pdf. Unlike the federal reserve board, the reserve banks are not federal agencies. Congressional report on hsbc jul2012 u nited states. Senate report blasts hsbc over money laundering law360. The permanent subcommittee on investigations held a hearing, u. Vulnerabilities to money laundering, drugs, and terrorist financing using hsbc group plc as a case history. Senate permanent subcommittee on investigations hsbc money. Jan 25, 2012 hsbc holdings plc is under investigation by a senate panel in a moneylaundering inquiry, the latest step in a longrunning u.
Hsbc, whose initials originally stood for hong kong shanghai banking corporation, now has operations in over 80 countries, with hundreds of affiliates spanning the globe. Dec 11, 2012 failure after failure at hsbc led to the londonbased bank being used as a conduit for drug kingpins and rogue nations, a 300page report compiled for a us senate committee has found. Hsbc helped terrorists, iran, mexican drug cartels. Hearings senate homeland security and governmental. Its parent corporation, hsbc holdings plc, called hsbc group, is headquartered in london, and its chief executive officer is located in hong kong. Robert sherman, a spokesman for hsbc, which is based in london, said on wednesday that the bank had been and would continue to cooperate with. You will have seen the reports of hsbcs appearance two weeks ago before the us senates permanent subcommittee on investigations psi. Hsbc was questioned by the senate permanent subcommittee on investigations chaired by no other than super communist carl levin, who unfortunately also heads the senate committee on armed services. Senate investigation for violations in its antimoney laundering operations. The us senate investigation concluded that hsbc had been responsible for. Hsbc case history majority and minority staff report permanent subcommittee on investigations. Hsbc, europes biggest bank headquarter in the worlds financial capital london, is under a u. Us vulnerabilities to money laundering, drugs, and terrorist.
Hsbc hit with money laundering investigation the fiscal. Senate permanent subcommittee on investigations, july 4, 2012. Executive summary united states senate committee on. Congressional report on hsbc jul2012 u nited states senate. Its not just tax drug cartels, sanctions busting and disregarding the risk of terrorist financing.
In a report pursuant to a yearlong investigation into the doings at the bank by a senate permanent subcommittee on investigations, committee chairman. Source document contributed to documentcloud by cora currier propublica. And hsbc was the biggest of them all, according to the 2012 senate investigation and the deferred prosecution agreement itself. Jul 16, 2012 a report prepared by senators carl levin and tom coburn showed the global bank hsbc provided banking services and u. Hsbc failed to act on money laundering, says us senate hsbc. Hsbc is one of the biggest and most geographically diverse financial institutions in the world which has grown organically and by purchasing other firms.
Executives of hsbc holdings plc ignored warnings for years that the banks farflung operations were being used by moneylaunderers and potential terrorist financiers, according to a senate. Report by the permanent subcommittee on investigations majority. Although the federal reserve board is required to report to congress on its activities, its decisions do not have to be approved by either the president or congress. To examine the current money laundering and terrorist financing threats associated with correspondent banking, the subcommittee selected hsbc as. Senate report criticizes hsbc for inadequate internal. Dec, 2012 hsbc s record on facilitating intemational money launderingand therefore endangering americas economy and national securityis well documented. Jul 16, 2012 in the subcommittees 330page report, expected to be released at a hearing on tuesday, hsbc bank usa which the report refers to as hbus is portrayed as failing to do due diligence. There were, indeed, hearings based on a report by the house permanent subcommittee on investigations in july 2012, entitled u. The house financial services committees investigation into dojs exercise of. Hsbc traces its origin to a hong in hong kong, and its present form was established in london by the. The report into hsbc, released ahead of a senate hearing on. The us senate investigation concluded that hsbc had been responsible for the following. Hsbc case history, large pdf file available here was issued after a yearlong senate investigation zeroedin on the banks u. The hearing related to an investigation by the psi into risks to the us financial system from inadequate compliance with us regulations around money laundering and financial sanctions.
The hsbc case is part of a sweeping investigation into the movement of tainted money through the american financial system. The us department of justice, in turn, may reconsider the deal that shields hsbc from penalties for previous law breaking. The civil lawsuit holds hsbc accountable as an integral part of that international drug and murder apparatus. At this time it is not possible to print the document with annotations.
Senate report accuses hsbc of involvement in mexican money laundering, circumventing iran sanctions and more linette lopez 20120716t22. Senate investigative committee report on hsbc money. Drug lords and terrorists were once welcome at hsbc, report says. Senate leader calls for us governments explanation in. Committee presented the results of its investigation of hsbc, the international banking giant, that included over a million pieces of evidence, mostly in the form of emails between executives, showing patterns of noncompliance to laws and regulations, as. I dont know whether ill continue this but wanted to write up where im at right now. Vulnerabilities to money laundering, drugs, and terrorist financing. Senate, justice department as well as irs hsbc, europes biggest bank headquarter in the worlds financial capital london, is under a u. Senate permanent investigations subcommittee report thoroughly documented the role of hsbc as the number one moneylaundering bank for the mexican and colombian drug cartels. In the course of the internal investigation into the reasons for providing political. Hsbc traces its origin to a hong in hong kong, and its present form was established in london by the hongkong and shanghai banking corporation to act as a new. Hsbcs most recent annual report, published last year, said the bank was under investigation in the us by the doj and irs regarding whether certain.
A 330page report from the senate permanent subcommittee on investigations released on the eve of a hearing on hsbcs antimoney laundering controls found that british banks u. Hsbc threatened with new investigations in uk and us rt. Deputy chairman and chief executive, the hongkong and shanghai banking corporation limited. Hsbc hit with money laundering investigation the fiscal times. Jul 20, 2012 overall, from the senate committees report using hsbcs approach to aml as a case study there are a number of compliance lessons for firms, both large and small, to consider. Executive summary introduction the following bipartisan report is the result of an 18month investigation launched by senate finance committee ranking member ron wyden, dore.
In the subcommittees 330page report, expected to be released at a hearing on tuesday, hsbc bank usa which the report refers to as hbus is portrayed as failing to do due diligence. Hsbc case history majority and minority staff report permanent subcommittee on investigations united states senate released in conjunction with the. Last july, the senate homeland security and governmental affairs permanent subcommittee on investigations published a report revealing that hsbcs failure to implement effective anti. Hearings senate homeland security and governmental affairs. Facilities in benghazi, libya, september 1112, 2012 together with additional views january 15, 2014. Senate last december, and in april he forwards it to the house foreign affairs committee. The inquiry sought information on how gilead sciences, inc. Hsbc holdings plc is a british multinational investment bank and financial services holding company. The swiss branch of the bank is under the jurisdiction of switzerland.
Senators to issue stinging report on hsbcs aml controls. Senate panel in a money laundering inquiry, the latest step in a longrunning u. Investigation into whether i can parse hsbc s pdf statements to produce machine readable data. Hsbc case history, but according to a subcommittee aide, none of the data that falciani had taken from the bank was provided to the committee. Hsbc s record on facilitating intemational money launderingand therefore endangering americas economy and national securityis well documented. Each reserve bank is a federally chartered corporation with a board of directors. Full text of senate report on hsbc internet archive. United states senate permanent subcommittee on investigations committee on homeland security and governmental affairs carl levin, chairman tom coburn, ranking minority member u. Jul 16, 2012 the report is the product of a yearlong investigation by a senate subcommittee, the permanent subcommittee on investigations. Yesterday, according to press reports, in testimony before the senate. The british banking giant pledged to clean up its self. I tried using the pdfreader gem and the pdf2ps and ps2ascii command line tools to extract the text from the pdf. Regulators and hsbc faulted in report on money laundering. Log on to report a lost or stolen card this link will open in a.
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