Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

HSBC Holdings Plcs private bank offices were searched by authorities on Wednesday as a part of an investigation over allegations of money laundering.

Genevas public prosecutor said in a statement that it have launched an investigation in relation to the recent “public disclosures”.

The raid began early on Wednesday and it was led by Attorney General Olivier Jornot and the prosecutor Yves Bertossa.

“We are looking for everything and anything we can find,” the prosecutor said, adding that it was looking into allegations of “aggravated money laundering”.

The criminal investigation would also extend to individuals who were related to the process of money laundering, the statement said.

Earlier this month HSBCs Switzerland arm was accused of helping wealthy clients avoid taxes and also aiding criminals launder money.

A report issued by an international news organization showed that Europes largest bank by assets illegally serviced 100 000 clients spread across 200 countries, ranging from rock stars and tax evaders to arms dealers and blood diamond merchants.

The report was based on a client information that a former HSBC computer expert stole from the bank in 2008.

“We have co-operated continuously with the Swiss authorities since first becoming aware of the data theft in 2008 and we continue to co-operate.” HSBC said in a statement released on Wednesday.

Last year HSBC said it had lifted its compliance employees to 6 000 from 1 500 and was spending $1 billion, double the previous amount, on helping authorities.

Since the information leak the bank has been trying to clear up its reputation. It admitted to have knowledge of “clients that may not have fully met their applicable tax obligations” and said it had undergone significant change over the past several years, including abandoning clients who do not “meet the strict new HSBC standards.”

Over the weekend British papers published a letter from HSBCs Chief Executive Stuart Gulliver, who offered his “sincerest apologies”.

HSBC is also facing criminal investigations in the US, Belgium, Argentina and France.

In late 2012 HSBC agreed to pay nearly $2 billion in fines to US authorities for processing drug money out of Mexico and also transferring funds from sanctioned countries, including Iran.

HSBC gained 0.28% on Tuesday and closed at GBX 602.80 in London. On Wednesday the stock gained 0.83% to GBX 607.82 at 13:35 GMT, marking a one-year decrease of 7.39%. The company is valued at £115.89 billion.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Spot Gold edges up, but firmer US Dollar weighsSpot Gold edges up, but firmer US Dollar weighs Spot Gold gained on Monday, reversing a loss from Friday, but a firmer US Dollar was limiting upside for the yellow metal."There's a lack of upside momentum (in gold) due to some technical factors and the dollar remains pretty resilient, […]
  • Swiss Franc Slides as Risk-Off Flows Favor US DollarSwiss Franc Slides as Risk-Off Flows Favor US Dollar Key Moments USD/CHF traded near 0.7960 in Asian dealings on Friday after recovering from losses of more than 0.5% the previous day. Renewed tensions around the Strait of Hormuz, including the downing of two Iranian drones, […]
  • PlayStation and Xbox in a fierce battle for holiday season salesPlayStation and Xbox in a fierce battle for holiday season sales Few days before the launch of the two best-selling game consoles, it appears Microsoft and Sony are running from a very close starting position.Sonys latest model in the next-generation battle of gaming consoles, the PlayStation 4, is […]
  • Toyota slashes annual production target due to parts and chips shortagesToyota slashes annual production target due to parts and chips shortages Toyota Motor Corp (7203) said last week that it had revised down its annual production target by 300,000 vehicles due to coronavirus-related output slowdown at parts facilities in Vietnam and Malaysia as well as because of a global […]
  • Forex Market: EUR/GBP daily trading forecastForex Market: EUR/GBP daily trading forecast Yesterday’s trade saw EUR/GBP within the range of 0.7061-0.7118. The pair closed at 0.7108, up 0.26% on a daily basis and marking the first gain in the past three trading days. The daily low has also been the lowest level since August 11th, […]
  • Forex Market: AUD/JPY trading forecast for MondayForex Market: AUD/JPY trading forecast for Monday During Friday’s trading session AUD/JPY traded within the range of 95.42-95.81 and closed at 95.63, losing 0.03% for the day, but gaining 0.92% for the week.Fundamental viewThe Japanese Current Account surplus probably widened to 0.323 […]