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HSBC Banking Leak Shows Tax Avoidance, Dealings With Criminals

Posted by Soulskill on from the all-about-the-benjamins dept.

An anonymous reader writes: Data in a massive cache of leaked secret bank account files lift the lid on questionable practices at a subsidiary of one of the world's biggest financial institutions. HSBC's Swiss banking arm did the following: Routinely allowed clients to withdraw bricks of cash, often in foreign currencies of little use in Switzerland; Aggressively marketed schemes likely to enable wealthy clients to avoid European taxes; Colluded with some clients to conceal undeclared "black" accounts from their domestic tax authorities; and provided accounts to international criminals, corrupt businessmen and other high-risk individuals. For its part, HSBC admits that it is liable for past transgressions but claims its practices have changed.

5 of 129 comments (clear)

  1. HSBC was laundering money for drug cartels by Anonymous Coward · · Score: 2, Interesting

    In the US decade or so ago. They are a blatant and repeat offender. Their main profits come from servicing organized crime and criminals, and should have been shut down years ago.

    1. Re:HSBC was laundering money for drug cartels by ihtoit · · Score: 4, Interesting

      yes, and diamorphine, too.

      Back when opium dens were to be found next door to the Old Bailey and off the reception atria of every barrister in London. Often in the same building, too - occasionally you'd even find a room full of very young girls (or boys, if that was your poison). It all came in on the East India Company Docks. Where CANARY WHARF now stands.

      Funny, that.

      --
      Political debates have me rolling my eyes so much I think I got optical whiplash. I should sue. - Foamy The Squirrel
  2. Re:Questionable banking? by MrDoh! · · Score: 3, Interesting

    I just wish we'd find out who some of these clients are. Yes, the bank should be in hot water for this, but so should the politicians, err.. I mean, random businesses who also use these services.

    --
    Waiting for an amusing sig.
  3. Re: Avoiding versus evading by Anonymous Coward · · Score: 2, Interesting

    The bit where it classifies them as "undeclared" "black" accounts means _evasion_. But I wont ruin the idealistic dream that a difference even really exists. HSBC is too big to fail remember. So lets see the account holders pass the buck because the bank advised it. And they can't really penalize the bank because as seen on numerious occasions they are above the law.

  4. Re:Questionable banking? by Coisiche · · Score: 4, Interesting

    A BBC new site article yesterday had this passage...

    The bank now faces criminal investigations in the US, France, Belgium and Argentina. HSBC said it is "co-operating with relevant authorities". But in the UK, where the bank is based, no such action has been taken.

    Whether anything happens as a result of those investigations remains to be seen. And in case you're wondering why there is no such action taken in the UK, the reason can be inferred from the next paragraph...

    The man in charge of HSBC at the time, Stephen Green, was made a Conservative peer and appointed to the government.