Page 164 - Bank Case Studies

“HSBC said it had $604m of provisions outstanding at

the end of December (2017) relating to its private bank,

which is being investigated in several countries,

including the US, Belgium, Argentina, India and Spain.

But it said “management’s estimate of the possible

aggregate penalties” could exceed $1.5bn, which a

spokesman described as a worst-case scenario. “ (13)

HSBC is also being investigated by UK regulators for its

alleged links, through Dubai and Hong Kong, to money

laundering by South Africa’s billionaire Gupta family, whose

links to president Jacob Zuma are at the heart of a political

storm in that country.

Nevertheless, for Flint compliance will remain a top priority

for HSBC as it moves forward.