Page 9 - HSBC (D) Case Study

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.