Compliance
HSBC Faces $1.5 Billion Fines If Global Probe Finds Abuses

Global investigations could place a stick in the spokes of HSBC, not long after the bank shelled out $100 million to settle currency-rigging claims in the US.
HSBC could face fines
exceeding $1.5 billion if multiple cross-jurisdictional probes
find its Swiss private banking unit helped clients evade
taxes.
Authorities in the US, Belgium, Argentina, India, Spain and
elsewhere are investigating allegations of tax evasion or tax
fraud, money laundering and unlawful cross-border banking
solicitation at HSBC’s private bank in the Alpine State, it said
in its annual
report earlier this week. Less than fourth months ago, HSBC
paid the French government $370 million to resolve claims that it
helped native clients hide assets from French tax
authorities.
The London/Hong Kong-listed lender has been dogged by a string of
criminal investigations. Last month, it shelled out $100 million
to the US Department of Justice (DoJ) to sweep under the carpet a
case alleging it had rigged clients’ currency transactions. At
the time, HSBC had just been released from a five-year deferred
prosecution agreement with the DoJ for helping Mexican drug
cartels wash dirty cash and breaching international sanctions in
doing business with Iran.
Stuart Gulliver, chief executive, who is to step down after seven
years at the helm, said the bank had moved on from the mistakes
of the past.
"We have implemented global standards and financial controls to
the highest levels," Gulliver said. "HSBC is in a stronger and
better position today to protect itself from bad actors than we
were in 2010."