Billion-dollar bombshell for HSBC

Stat of the day: $1bn. That's how much the American authorities may fine HSBC for having inadequate controls in place to ensure it did not finance terrorism.

by Michael Northcott
Last Updated: 09 Oct 2013

Banks are having a rough old trot these past few weeks thanks to the Libor rate fixing scandal, which engulfed Barclays and saw the resignations of three senior executives. But now scrutiny has moved to HSBC, and executives will be appearing before the US Senate’s investigative panel next week to give excuses for their money-laundering controls which failed to pass muster between 2004 and 2010. 

Details about what kinds of criminal activities the bank may have inadvertently financed are sparse, but its Dutch competitor ING last year had to pay $619m to settle accusations that it helped Iranian and Cuban companies move billions of dollars through American financial institutions, violating US embargos. 

The banking saga continues…

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