Page 17 - HSBC (D) Case Study

“In April 2003, the Federal Reserve sent HSBC's
American subsidiary a cease-and-desist letter,

ordering it to clean up its act and make a better
effort to keep criminals and terrorists from

opening accounts at its bank. One of the bank's

bigger customers, for instance, was Saudi

Arabia's Al Rajhi bank, which had been linked by

the CIA and other government agencies to

terrorism. According to a document cited in a

Senate report, one of the bank's founders,

Sulaiman bin Abdul Aziz Al Rajhi, was among 20

early financiers of Al Qaeda, a member of what

Osama bin Laden himself apparently called the

"Golden Chain.

According to a document cited in a Senate

report, one of the bank's founders, Sulaiman

bin Abdul Aziz Al Rajhi, was among 20 early
financiers of Al Qaeda, a member of what

Osama bin Laden himself apparently called the
"Golden Chain.” (5)

In January 2005, HSBC had decided to partially sever ties

with Al Rajhi, breaking with the Al Rajhi Bank but not its

related trading company. However, many HSBC

executives wanted the Al Rajhi bank arrangement

restored. Between 2005 and 2006, violated its parole and

received 30 different formal warnings from US authorities

over its conduct whilst under the order. However, in

February 2006 George Bush suddenly decided to release