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HSBC Holdings plc (LSE:HSBA) is the first to draw blood amongst British banks this year as it faces yet another charge of money laundering and tax evasion cases, the same accusation that had the bank paying £1.2 billion (US$1.9 billion) to US authorities in 2012.
Late yesterday, Argentina’s Administrador Federal de Ingresos Publicos de Argentina (AFIP) – the country’s tax regulator – revealed it has filed a case against HSBC’s Argentina subsidiary in February 2013 over alleged dubious transactions spanning three years totaling about £80 million (US$100 million).
According to Ricardo Echegaray, head of AFIP, the agency has uncovered fraudulent transactions “generated by evasion and money laundering” amounting to 392 million Argentine pesos (£50.9 million in today’s exchange rate) for the period of six months alone.
A further AR$224 million (£29 million) had been hidden from the Argentine tax authority by HSBC, which is also being accused of helping its clients evade taxes, Echegaray said.
HSBC denied wrongdoings and said it will cooperate with the authorities in the investigation but Mr. Echegaray claimed the bank set up a criminal organisation that facilitated the illegal scheme.
“It’s clear to us that there was a conspiracy between HSBC and private companies,” Mr. Echegaray said in a conference in Buenos Aires, the capital of Argentina.
“The first thing they have to do is to pay the state what it’s owed and dismantle a gang of swindlers.”
Lysette Bravo, spokesperson for HSBC in Argentina stated on behalf of the bank they are “committed to working cooperatively with authorities to ensure a thorough review and appropriate resolution of the matter”, affirming that the allegation is “of great concern” to the bank.
“HSBC takes compliance with the law, wherever it operates, very seriously and strongly supports the efforts of governments and regulators to detect unlawful activity and take appropriate action,” Bravo stated.
Last year, HSBC’s US subsidiaries were fined US$1.9 billion for violations of the anti-money laundering laws and bank secrecy laws of the United States, the biggest fine ever sanctioned to a bank for the said case.
Since the investigations began, the bank has committed to overhaul its structures, procedures, and controls as well as the creation of a Global Compliance Officer for the HSBC Group to oversee worldwide compliance across all its financial arms.
“We hope to recover what is due and see the courts apply an appropriate penalty,” Echegaray added.
Back in London, shares of the parent company HSBC Holdings plc remained almost flat at 721.10 pence, or 0.1% higher than yesterday’s close, by 11:00 GMT, undisturbed by the fresh allegations.
Before reading anything about HSBC, people should go to youtube: How HSBC Chairman Mr Flint lied to shareholders. Also look at Protest against HSBC in Mumbai.
Is Lies the new truth at HSBC? Is Cowardice the new Courageous Integrity at HSBC? Is HSBC stealing people’s reputations, is HSBC committing fraud against customers in India and Indian’s around the world?
Mr Gulliver states ‘HSBC of today’ is vastly different to the one that made the errors. Mr Gulliver the behaviour was criminal not an error. Is HSBC is still abusing customers in India; many people are claims HSBC has committed fraud against them?
Should someone be investigating the personal details supplied with the sale by The Hongkong and Shanghai Banking Corporation Limited in India to JM Financial LTD?
By the behaviour of The Hongkong and Shanghai Banking Corporation Limited in India, is HSBC Group breaking the Deferred Prosecution Agreement with the DOJ in the USA?
Mr Flint has stated many times “Nothing is more important than our reputation” so why has Mr Flint not resigned, maybe it would take Courageous Integrity?
Where is HSBC’s reputation today? What is the response of Mr Flint?
The major question is, can any decent society afford the behaviour of HSBC?
“First they ignore you, then they ridicule you, then they fight you, and then you win.”