Page 144 - Bank Case Studies
P. 144
In November 2012, the
U.K. tax authorities
obtained details of
every British client of
HSBC in the island of
Jersey, more than 4,000
people, after a
whistleblower secretly provided a detailed list of names,
addresses and account balances.
Globally, HSBC faced repeated accusations that it was not
maintaining sufficient controls over the source of money
deposited in its accounts. “Money laundering rules demand
that banks monitor the source of money and report any
suspicions to the relevant authorities. Most banks take an
active approach to this duty.” (8)
HSBC managed to avoid being
criminally prosecuted – a
move that could have stopped
the bank operating in the US-
when it was forced to pay a
record $1.921bn (£1.2bn) (1%
of market capitalisation) for
the largest drug-and-terrorism money-laundering case ever
brought against a company for allegedly allowing drug
barons and terrorists to move money around the global
financial system.
