United Arab Emirates

HSBC makes US$77m provision for money laundering, tax investigations


By added on 21/02/2017

HSBC Holdings (0005) has made a provision US$773 million for tax and money laundering-related investigations, the bank said, reports The Standard.

These investigations include the Argentine tax authority's criminal action against various individuals, including current and former HSBC employees in November 2104. The criminal action includes allegations of tax evasion, conspiracy to launder undeclared funds and an unlawful association among HSBC Swiss Private Bank, HSBC Bank Argentina, HSBC Bank USA and certain HSBC employees, which allegedly enabled numerous HSBC customers to evade their Argentine tax obligations, the bank said.

 

In February 2015, the Indian tax authority issued a summons and request for information to an HSBC company in India. In August 2015 and November 2015, HSBC companies received notices issued by two offices of the Indian tax authority, alleging that the Indian tax authority had sufficient evidence to initiate prosecution against HSBC Swiss Private Bank and an HSBC company in Dubai for allegedly abetting tax evasion of four different Indian individuals and/or families and requesting that the HSBC companies show why such prosecution should not be initiated. HSBC Swiss Private Bank and the HSBC company in Dubai have responded to the show cause notices, the bank reported.