Pressure mounts on HSBC as Swiss offices are probed
PRESSURE mounted on HSBC yesterday as Swiss prosecutors and police raided the offices of its Geneva-based private banking subsidiary after opening a criminal inquiry into allegations of money laundering.
Europe’s biggest lender, already facing claims it colluded in tax-dodging by clients of its Swiss operation, is thought to have been surprised by the latest probe.
HSBC said it was cooperating with Swiss authorities, who are investigating “suspected aggravated money laundering” prompted by the recent published revelations about the private bank.
We have absolutely no appetite to do business with clients who are evading taxes or who fail to meet our financial crime compliance standards
Prosecutors searched two offices and said its investigation could target individuals, who would be liable to a fine and up to five years in prison if found guilty of serious money laundering offences.
Attorney General Olivier Jornot said: “As of now, we aim at securing all the information concerning the accounts and clients who have been mentioned as detaining funds resulting from criminal offences.
“What we are looking for today is not yet proof. We are looking for all documents, all information which will then allow us to make an analysis.”
HSBC’s chief executive Stuart Gulliver said revelations its Swiss operation had helped customers evade taxes had been “painful” but it had been completely overhauled over the past few years.
He said: “We have absolutely no appetite to do business with clients who are evading taxes or who fail to meet our financial crime compliance standards.”
Britain’s City watchdog the Financial Conduct Authority said it was working with HSBC and other agencies looking into the bank’s current behaviour, while tax authorities in several countries are probing the allegations.
HSBC’s Swiss operation has been in focus since 2008, when a former IT employee fled Geneva with files which are alleged to show evidence of tax evasion by clients.
The bank said: “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.”
Mr Jornot said an investigation based on stolen evidence could not be carried out under Swiss law – but his office could investigate if it secured evidence itself.
