HSBC Holdings PLC is under investigation by a US Senate panel in a money-laundering inquiry, the latest step ina long-running US effort to halt shadowy money flows through global banks, according to people familiar with the situation and a companysecurities filing.
The inquiry being conducted by the Senate Permanent Subcommittee on Investigations could yield a report and congressional hearing later this spring, these people said. The subcommittee has a history of conducting high-profile hearings that have proved embarrassing for the world’s biggest banks.
The intensifying scrutinyof HSBC is the latest in a series if investigations by US officials into how global banks have processed — and in some cases, intentionallyhidden — financial transactions on behalf ofcountries which allegedly support terrorism, corrupt foreign officials, drug gangs and criminals.
Since 2008, European and US banks have signed deferred prosecution agreements and paid more than USD 1.2 billion in penalties for alleged violations of anti-money laundering regulations.
The specific focus of the Senate probe of HSBC isn’t known. A Reuters review of legal documents and prior regulatory probes, though, points to a number of alleged breakdowns in HSBC’s anti-money laundering systems.
HSBC spokesman Robert Sherman said in a statement, “We have ongoing discussions with officials”, including the Senate panel, “on a number of regulatory and compliance matters.The nature of these discussions is confidential; in all cases, we are cooperating.”
http://www.firstpost.com/business/us-senate-investigating-hsbc-for-money-laundering-194034.html