Breaking News: HSBC and Money Laundering

HSBC Holdings plc is a British multinational investment bank. It ranks at the 6^th largest bank in the world by 2020. Moreover, the bank acts as a financial service holding company.  However, recently it has found itself caught between severe allegations. Allegedly, HSBC allowed fraudsters to transfer millions of dollars around the world. It turns out the HSBC has been mobbing the Ponzi scheme millions, even despite warnings and suspicious activity report.

As the answer to the allegations, HSBC says it has always met its legal duties on reporting such activity. The files that have recently resurfaced report on the details of USD 80 million fraud.

Moreover, the leaked files show the investment scam started soon after the bank was fined USD 1.9 billion in the US over money laundering. The document’s leak includes a series of other revelations that suggest that other big banks in the US may have helped a notorious mobster move more than USD 1 billion.

Why Does This Matter?

Money Laundering is a profoundly serious crime. It is the process of taking dirty money – typically the proceeds of crimes such as drug dealing, trafficking, abduction, and corruption; and putting it into an account at a respected bank where it will not be linked with other illegal activities.

Let us remind you, banks always have to ensure that they do not help clients launder money or move it around in ways that break the rules.

FinCEN Files: Juicy Details

FinCEN files are a leak of up to 2,657 documents, which include 2,100 SARs (suspicious activity reports).

SARs are not evidence of any wrongdoings. Banks usually send them to governmental authorities if they suspect that customers could be up to no good. However, it is crucial and dictated by law for banks to know who their clients are, as it is not enough to file SARs and keep taking dirty money from clients.

The leaked documents submitted to the US Financial Crimes Enforcement Network, between 2000 and 2017, are full of suspicious information. The files cover transactions worth about USD 2 trillion. In fact, they are only a tiny proportion of the SARs submitted over the period. FinCEN stated that the leak could impact US national security, risk investigations and threaten the safety of those who file the reports.

We will be following the news closely and update you as soon as we know more.