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HSBC vulnerable to launder drug money

in International Business

HSBC vulnerable to launder drug money

The US Senate Permanent Subcommittee on Investigations released a report disclosing Europe’s largest bank, HSBC, being used to launder dirty money from around the world.

Drug money from Syria, Iran, Mexico, and Cayman Islands have certainly passed through the bank due to its lax control.

The committee, a Congressional watchdog that looks at financial improprieties, took a year long inquiry of 1.4million documents and interviews with 75 HSBC officials and bank regulators.

The documents and the report will be presented at the hearing on Tuesday at which HSBC executives are schedule to testify.

In a memo released ahead of the hearing, HSBC chief executive Stuart Gulliver said: “It is right that we will be held accountable and that we take responsibility for fixing what went wrong.

“As well as answering the subcommittee’s questions, we will explain the significant changes we have already made to strengthen our compliance and risk management infrastructure and culture,” he said.

According to an HSBC statement, its executives will offer a formal apology at the hearing.

This report comes amid the tough time European banks are going through.

Critics say the current furore over the manipulation of the Libor inter-bank interest rate is the latest example of a banking system in need of fundamental reform.

The report also concludes that the US bank regulator, the Office of the Comptroller of the Currency, failed to properly monitor HSBC.

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HSBC vulnerable to launder drug money

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