Page 21 - HSBC (D) Case Study

While his successor John Flint commented that the bank
faces some unresolved misconduct issues.

Money Laundering

Money laundering is an illegal

process of converting

proceeds from illegal

activities (such as drug

trafficking, human trafficking,

terrorist financing and tax

evasion) to a legitimate

source of income. Essentially,

any illicit activity such as drug production and trafficking

or other criminal activities that results in bulk cash (Dirty
money) may be disposed of through

Placement where bulk

currency is smuggled or is

mixed with legitimate bank

deposits or through

depositing amounts in small

denominations or

subdividing bank or

commercial transactions.

This is the most vulnerable stage of the money

laundering process.