The U.K. is considering a money laundering investigation of HSBC's Swiss operations in light of recent allegations that the bank maintained accounts for financial criminals, a British official said Wednesday. In a heated hearing of the House of Commons Public Accounts Committee, British lawmakers repeatedly questioned HM Revenue & Customs (HMRC) Permanent Secretary Lin Homer about the lack of stronger measures against the bank since obtaining data from France on its link to possible tax evasion. The agency, which does not have oversight of banks, obtained the information from French officials on the condition that it be used only for...
Although headline-grabbing settlements north of $1 billion have become the new normal for depository institutions operating in the United States, how those deals are impacting bank behavior is still unclear, at least for now, according to Brandon Garrett.
Facing parliamentary criticism, HSBC's top executives conceded Wednesday to "unacceptable" failures of its Swiss private banking unit that led to likely account abuses and subsequent reputational damage.
London-based HSBC Holdings Plc could find itself paying more to rectify past compliance problems following disclosures this week about the bank's services for clients with criminal ties, according to analysts.