Hsbc Implicated In Money Laundering From Iran And Mexico

It seems that the scandals of the big banks do not want to stop. Now HSBC is also accused of an incredible accusation. The bank is said to have smuggled billions of USD into the USA for drug dealers and money launderers.

The US Senate raised these serious allegations on Tuesday morning. Through transactions in countries such as Iran and Mexico, HSBC branches allegedly funneled the money into the US. HSBC had failed to meet its oversight responsibilities in any way. People have already drawn personnel consequences and fired the chief supervisor David Bagley.

The image of London’s major banks is badly tarnished, and the last thing they need is another scandal. Barclays has also just come under criticism for Libor falsification.

The specific accusation of the US Senate is that the bank violated US laws because it served as a gateway into the American financial system. Account openings from Mexico had not been checked carefully enough and as a result, in 2 years alone, about 7 billion USD from illegal transactions had flowed into the country. Warnings from authorities were also not taken seriously. In addition, HSBC had concealed transactions from Iran, whereby almost 20 billion USD were imported into the USA. In total, there were more than 28,000 concealed transfers.

These transactions allegedly took place from 2001 to 2007. The accusations are dramatic and the damage to the bank’s image is probably even more serious than the threat of penalties.