HSBC Bank has been allowing money laundering to happen right under its nose, according to a scathing report by the US Senate. Money suspected to come from drugs and terrorism deals.
Apparently HSBC Holdings plc has allowed the bank to act as a conduit for monies resulting from these shady underworld dealings from places like Mexico, Iran, the Cayman Islands, Saudi Arabia and even Syria!
Senator Carl Levin, chairman of the U.S. Senate Permanent Subcommittee on Investigations said "The culture at HSBC was pervasively polluted for a long time." The report also concluded that top US bank regulator the Comptroller of the Currency, had failed to monitor HSBC properly.
As we all know, banks around the world are on the ropes right now and so this news is likely to get under the noses of anyone who's had enough of any of their 'anti-customer, pro-profit' antics. Now, like Barclays over the Libor rate rigging scandal, HSBC might have to cough up hundreds of millions in settlements and fines for this failing.
Written and Presented by Marverine Cole