related media reports

7/30/2019 Related Media Reports

1/18

Link of media reports:

1. http://indiatoday.intoday.in/story/centre-offers-amnesty-to-swiss-hsbc-account-

holders/1/207420.html

2. http://www.dnaindia.com/india/report_dna-special-union-govt-gives-clean-chit-to-hsbcs-india-

employees_1728138

3. http://www.forbes.com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes-clear-no-

hiding-cash-in-big-swiss-banks/

4. http://www.dailymail.co.uk/news/article-2184548/Standard-Chartered-Bank-Accused-hiding-

160bn-transactions-Iran-U-S-government.html

5. http://zeenews.india.com/business/news/international/hsbc-exposed-us-and-possibly-india-to-terror-funding_55918.html

6. http://articles.economictimes.indiatimes.com/2012-08-08/news/33100860_1_amnesty-

scheme-account-holders-black-money

7. http://web.orange.co.uk/article/news/report_hsbc_allowed_money_laundering

8.http://timesofindia.indiatimes.com/business/international-business/HSBC-fears-US-anti-money-

laundering-penalty-may-top-1-5-billion/articleshow/17111665.cms
http://indiatoday.intoday.in/story/centre-offers-amnesty-to-swiss-hsbc-account-holders/1/207420.htmlhttp://indiatoday.intoday.in/story/centre-offers-amnesty-to-swiss-hsbc-account-holders/1/207420.htmlhttp://indiatoday.intoday.in/story/centre-offers-amnesty-to-swiss-hsbc-account-holders/1/207420.htmlhttp://www.dnaindia.com/india/report_dna-special-union-govt-gives-clean-chit-to-hsbcs-india-employees_1728138http://www.dnaindia.com/india/report_dna-special-union-govt-gives-clean-chit-to-hsbcs-india-employees_1728138http://www.dnaindia.com/india/report_dna-special-union-govt-gives-clean-chit-to-hsbcs-india-employees_1728138http://www.forbes.com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes-clear-no-hiding-cash-in-big-swiss-banks/http://www.forbes.com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes-clear-no-hiding-cash-in-big-swiss-banks/http://www.forbes.com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes-clear-no-hiding-cash-in-big-swiss-banks/http://www.dailymail.co.uk/news/article-2184548/Standard-Chartered-Bank-Accused-hiding-160bn-transactions-Iran-U-S-government.htmlhttp://www.dailymail.co.uk/news/article-2184548/Standard-Chartered-Bank-Accused-hiding-160bn-transactions-Iran-U-S-government.htmlhttp://www.dailymail.co.uk/news/article-2184548/Standard-Chartered-Bank-Accused-hiding-160bn-transactions-Iran-U-S-government.htmlhttp://zeenews.india.com/business/news/international/hsbc-exposed-us-and-possibly-india-to-terror-funding_55918.htmlhttp://zeenews.india.com/business/news/international/hsbc-exposed-us-and-possibly-india-to-terror-funding_55918.htmlhttp://zeenews.india.com/business/news/international/hsbc-exposed-us-and-possibly-india-to-terror-funding_55918.htmlhttp://articles.economictimes.indiatimes.com/2012-08-08/news/33100860_1_amnesty-scheme-account-holders-black-moneyhttp://articles.economictimes.indiatimes.com/2012-08-08/news/33100860_1_amnesty-scheme-account-holders-black-moneyhttp://articles.economictimes.indiatimes.com/2012-08-08/news/33100860_1_amnesty-scheme-account-holders-black-moneyhttp://web.orange.co.uk/article/news/report_hsbc_allowed_money_launderinghttp://web.orange.co.uk/article/news/report_hsbc_allowed_money_launderinghttp://timesofindia.indiatimes.com/business/international-business/HSBC-fears-US-anti-money-laundering-penalty-may-top-1-5-billion/articleshow/17111665.cmshttp://timesofindia.indiatimes.com/business/international-business/HSBC-fears-US-anti-money-laundering-penalty-may-top-1-5-billion/articleshow/17111665.cmshttp://timesofindia.indiatimes.com/business/international-business/HSBC-fears-US-anti-money-laundering-penalty-may-top-1-5-billion/articleshow/17111665.cmshttp://timesofindia.indiatimes.com/business/international-business/HSBC-fears-US-anti-money-laundering-penalty-may-top-1-5-billion/articleshow/17111665.cmshttp://timesofindia.indiatimes.com/business/international-business/HSBC-fears-US-anti-money-laundering-penalty-may-top-1-5-billion/articleshow/17111665.cmshttp://timesofindia.indiatimes.com/business/international-business/HSBC-fears-US-anti-money-laundering-penalty-may-top-1-5-billion/articleshow/17111665.cmshttp://web.orange.co.uk/article/news/report_hsbc_allowed_money_launderinghttp://articles.economictimes.indiatimes.com/2012-08-08/news/33100860_1_amnesty-scheme-account-holders-black-moneyhttp://articles.economictimes.indiatimes.com/2012-08-08/news/33100860_1_amnesty-scheme-account-holders-black-moneyhttp://zeenews.india.com/business/news/international/hsbc-exposed-us-and-possibly-india-to-terror-funding_55918.htmlhttp://zeenews.india.com/business/news/international/hsbc-exposed-us-and-possibly-india-to-terror-funding_55918.htmlhttp://www.dailymail.co.uk/news/article-2184548/Standard-Chartered-Bank-Accused-hiding-160bn-transactions-Iran-U-S-government.htmlhttp://www.dailymail.co.uk/news/article-2184548/Standard-Chartered-Bank-Accused-hiding-160bn-transactions-Iran-U-S-government.htmlhttp://www.forbes.com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes-clear-no-hiding-cash-in-big-swiss-banks/http://www.forbes.com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes-clear-no-hiding-cash-in-big-swiss-banks/http://www.dnaindia.com/india/report_dna-special-union-govt-gives-clean-chit-to-hsbcs-india-employees_1728138http://www.dnaindia.com/india/report_dna-special-union-govt-gives-clean-chit-to-hsbcs-india-employees_1728138http://indiatoday.intoday.in/story/centre-offers-amnesty-to-swiss-hsbc-account-holders/1/207420.htmlhttp://indiatoday.intoday.in/story/centre-offers-amnesty-to-swiss-hsbc-account-holders/1/207420.html


2/18

11/9/12offers amnesty to Swiss HSBC account ho lde rs: Reports: Indi a T oday

1/2

Print Close

MORE ON SALMAN

Centre offers amnesty to Swiss HSBCaccount holders: Reports

INDIA TODAY ONLINE | New Delhi, July 10, 2012 | 22:30

India had prepared a list of black money hoarders based on stolen data obtained from Swiss banks.

The Centre has reportedly offered amnesty to over 100 wealthy Indians who allegedly evaded taxes by

hiding funds in accounts in HSBC Holdings' Swiss unit.

According to reports, the income tax (I-T) department has agreed not to
http://conclave.intoday.in/article/india-today-conclave-2012-salman-rushdie/3429/38.htmlhttp://indiatoday.intoday.in/http://conclave.intoday.in/article/india-today-conclave-2012-salman-rushdie/3429/38.htmlhttp://indiatoday.intoday.in/#http://indiatoday.intoday.in/#


3/18

11/9/12offers amnesty to Swiss HSBC account ho lde rs: Reports: Indi a T oday

2/2ndiatoday.intoday.in/articlePrint.jsp?aid=207420

RUSHDIE

Watch: Salman Rushdie's

session video at India

Today Conclave 2012

Watch: Salman Rushdie's

session at India Today

Conclave 2010

In pics: Salman Rushdie on

Freedom and dissent in2010

Full text of Rushdie's

speech at India Today

Conclave 2012

Full text of Rushdie's

speech at India Today

Conclave 2010

Imran Khan was referred to asIm the Dim, says Rushdie

start criminal proceedings or levy penalties if these citizens repatriate their

moneyfrom Geneva and pay the taxes.

By this, even as India joins countries like the United States and the United

Kingdom in cracking down on rich people who have evaded taxes on their

undisclosed offshore funds amid probes into money laundering and tax

evasion, the government seems to be defaulting on its word to Parliament.

The amnesty offer is being made to some people on a list of 7 00 citizens

with HSBC accounts in Geneva that was given to the government by French

authorities last y ear.

According to reports, the I-T department has agreed to halt criminal

proceedings if the black money is brought back and the names of those on

theblack moneyhoarders' list would not to be disclosed.

India had prepared a list of black money hoarders based on stolen data

obtained from Swiss banks. The government's amnesty scheme comesdespite the Central Board of Direct Taxes (CBDT) probing tax evasion by

wealthy citizens.

The reason given behind the government move was that it has been

convinced that the Swiss authorities were unlikely to part with the details

of cash hoarders in their banks. They have told India that they would share

data only if they were assured of a tax offence. The government also

believes that not all money stored in Swiss banks is black money .

Print Close

URL for this article :

http://indiatoday.intoday.in/story/centre-offers-amnesty-to-swiss-hsbc-account-holders/1/207420.html

@ Copyright 2012 India Today Group.
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4/18

1/9/12>DNA special: Union govt gives clean chit to HSBCs India employ ees

1/1www.dnaindia.com/print710.php?cid=1728138

http://www.dnaindia.com/

DNA

special: Union govt gives clean chit to HSBCs India employee sDNA / Manan Kumar / Wednesday, August 15, 2012 9:00 IST

The Union government has given a clean chit to HSBC bank saying that none of its activities raise alarm bells

from Indias point of view.

India had launched investigations into the working of the banks staff in the country following a report by US

Senates permanent subcommittee on investigations last month. The subcommittee had found deficiencies in

the staffs role as offshore reviewers, particularly in compliance to safety mechanism against money laundering

and terror financing.

The banks India s taff was cleared after a preliminary report from the Financial Investigation Unit and the ReserveBank of India (RBI), sources said. However, both the agencies have been asked to continue with their

investigation and maintain surveillance of the banks activities. Sources added that the two have sought more

details on HSBC from US authorities.

Highly-placed sources said there was no threat perception or anything suspicious regarding the HSBC staffs

work as offshore reviewers for suspected transaction reports (STRs).

Such transaction reports, as per Indian rules, are generated when a transaction worth Rs1 lakh and above is

conducted in any of the banks in India. Different countries have different criteria for STRs. These reports are

reviewed by the banks, and if anything suspicious is found, intelligence agencies are informed.

US HSBC has outsourced the work to review such transactions to agencies in Pune. And the senate committee

had regis tered that there was lack of quality work and manpower to review such transactions.

On random checking, we have not found undue clearances of suspected transaction alerts. As far as quality of

work and inadequate staff strength in HSBCs Anti-Money Laundering Compliance Department is concerned, it

has nothing to do with us and is between US authorities and the bank, sources s aid, adding that it is the US that

has outsourced class ified job of reviewing STRs to India and should not have painted the staff in a negative light.

URL of the article: http://www.dnaindia.com/india/report_dna-special-union-govt-gives-clean-chit-to-hsbcs-india-

employees_1728138-all

Permission to reprint or copy this article or photo must be obtained from www.dnasyndication.com

2005-2012 Diligent Media Corporation Ltd. All rights reserved.
http://www.dnaindia.com/


5/18

1/9/12 Latest U.S.-Swiss Deal Makes Clear: No Hiding Cash In Big Swiss Banks - Forbes

1/3orbes.com/sites/janetnovack/2012/06/21//print/

Uncle Sam will find out about your Swiss accounts.

(Photo credit: Wikipedia)

The U.S. Treasury said today that it

has reached deals with bothSwitzerland and Japan that will

allow the U.S.with just a few extra

stepsto get the comprehensive

reporting of foreign bank accounts

held by U.S. citizens required by the

Foreign Account Tax Compliance

Act (FATCA). The agreements are

just frameworks, so more details

must still be worked out before they

take effect.

FATCA was passed by Congress in

2010 as a part of the U.S.

crackdown on offshore tax cheating

that is estimated to cost Uncle Sam

$100 billion a year. The new law

requires foreign banks either to

report annually to the Internal

Revenue Service on all accounts

owned by U.S. citizens (and by

foreign entities owned by U.S.

citizens) or to withhold as tax and

send to the IRS 30% of the proceeds from U.S. source payments to thoseaccounts. Foreign banks must enter into a reporting agreement with the IRS

by June 30, 2013 or else begin withholding on U.S. source payments on Jan.

1, 2014.

In recent years , dozens of wealthy Americans, including billionaire California

developer Igor Olenicoff, have pleaded guilty to hiding money in undisclosed

accounts at UBS AG in Switzerland, HSBC in India and other offshore banks.

In 2009, as part of a deferred prosecution agreement with the Department of

Justice, UBS agreed to pay the U.S. $780 million in fines, penalties and

restitution and turn over the names of thousands of U.S. account holders. The

U.S. is still investigating other Swiss banks, including Credit Suisse and Julius

Baer, and the Swiss are seeking a global resolution of all those cases. In its

own press release today announcing the new FATCA agreement, the Swiss

State Secretariat for International Financial Matters said it hopes an

agreement with the U.S. on the resolution of outstanding tax issues

concerning the past will be reached by year-end.

PERSONAL FI NANCE | 6/21/2012 @ 12:56PM | 2,984 viewsLatest U.S.-Swiss Deal MakesClear: No Hiding Cash In BigSwiss Banks

Janet Novack, Forbes Staff

I write from D.C. a bout tax and retirement policy and planning.
http://en.wikipedia.org/wiki/File:Uncle_Sam_BW.pnghttp://en.wikipedia.org/wiki/File:Uncle_Sam_BW.pnghttp://en.wikipedia.org/wiki/File:Uncle_Sam_BW.pnghttp://en.wikipedia.org/wiki/File:Uncle_Sam_BW.pnghttp://blogs.forbes.com/janetnovack/http://blogs.forbes.com/janetnovack/http://blogs.forbes.com/janetnovack/http://www.forbes.com/http://en.wikipedia.org/wiki/File:Uncle_Sam_BW.pnghttp://en.wikipedia.org/wiki/File:Uncle_Sam_BW.pnghttp://en.wikipedia.org/wiki/File:Uncle_Sam_BW.pnghttp://www.forbes.com/profile/igor-olenicoff/http://blogs.forbes.com/janetnovack/http://blogs.forbes.com/janetnovack/http://www.forbes.com/financehttp://www.forbes.com/http://www.sif.admin.ch/00488/index.html?lang=en&msg-id=45046http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=CShttp://www.forbes.com/2009/02/18/ubs-fraud-offshore-personal-finance_ubs.htmlhttp://www.forbes.com/profile/igor-olenicoff/http://en.wikipedia.org/wiki/File:Uncle_Sam_BW.png


6/18

1/9/12 Latest U.S.-Swiss Deal Makes Clear: No Hiding Cash In Big Swiss Banks - Forbes

2/3orbes.com/sites/janetnovack/2012/06/21//print/

FATCA aims to make it almost impossible to hide accounts at major foreign

banks going forward. Foreign banks and governments have objected to

FATCA as burdensome, overreaching and in many cases in conflict with their

own countries laws, but most major banks see little choice but to come into

compliance. (Some smaller foreign banks, to the dismay of U.S. expatriates,

have said theyno longer want U.S. citizen customers.) As the Swiss

Secretariat noted in its statement today: The implementation of these

provisions is generating high costs and legal uncertainty worldwide.

Switzerlands refusal to implement FATCA would cause major disadvantages

for the financial centre. The prohibitive withholding tax of 30% on all

payments from the United States and the likely consequence that foreign

financial institutions would terminate their business relationships with Swiss

financial institutions in the medium term would result in exclusion from the

worlds largest capital market.

In February, the U.S. reached a deal with France, Germany, Italy, Spain and

the United Kingdom which would reduce the burden on banksand

opportunities for tax evasion by citizens of all the participating countries

with a direct, government to government exchange of information on

accounts. That exchange would exempt financial institutions in those

countries from either reporting directly to the IRS or withholding 30%, solong as they report the information required to their own governments and

register with the IRS as Foreign Financial Institutions (or are in a category

exempt from FFI registration) .

The agreement with Switzerland creates a more cumbersome process, but

would also exempt the banks there from 30% withholding. Under the

framework, Swiss banks would report directly to the IRS on any U.S. owned

accountif the account owner consents. (Even that is technically a criminal

violation of Swiss bank secrecy laws, but the Swiss authorizes have agreed to

grant an exception.) If a a U.S. account owner doesnt consent to such

reporting, the information will eventually be handed over anyway, after a

process described by a Treasury official during a background briefing forreporters. According to the official, the Swiss bank would give the IRS a

summary of the number of accounts and total value of accounts owned by

recalcitrant U.S. citizens who refused to permit their information to be sent

directly to the IRS. The U.S. government would then formally ask the Swiss

government to collect and turn over information about the account holders on

the list, under the terms of a separate agreement covering the exchange of tax

information.

Similarly, the Japanese agreement would allow for direct reporting by banks

to the IRS, where account owners agree, and the reporting of an aggregate

number and value of recalcitrant accounts, with a follow up request to the

Japanese government. The Treasury official said that the deal with theEuropean nations and the agreements with Switzerland and Japan, present

two different models other countries could use to bring their banks into

compliance with FATCA. Final regulations implementing FATCA are expected

to be issued later this year.

Follow Janet Novack on Twitter

This article is available online at:

http://www.forbes .com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes -clear-no-

hiding-cash-in-big-swiss-banks/
http://www.forbes.com/sites/janetnovack/2012/06/21/latest-u-s-swiss-deal-makes-clear-no-hiding-cash-in-big-swiss-banks/http://www.twitter.com/janetnovackhttp://www.forbes.com/sites/robertwood/2012/02/10/5-nations-join-u-s-in-tax-evasion-crackdown/http://www.forbes.com/sites/robertwood/2012/03/23/fatca-makes-banks-shut-out-americans/


7/18

1/9/12ccused of hiding $160bn of t ransactions with Iran f rom the U.S. gov ern

1/8dailymail.co.uk//Standard-Chartered-Bank-Accused-hiding-160bn-transactions-Iran-U-S-gov ern

Click here to print

UK banking giant 'schemed' to hide $250BILLION business with Iran from the U.S.(andwhen confronted exec told Americancolleague 'you f**king Yanks think you can tellus what to do)

'Scheming' bank 'hid $250 billion worth of transactions with Iraniangovernment'New York State Department accuses SCB of concealing 60,000 transactionsRegulator says bank 'operated as rogue institution'6 billion wiped from its share value as world markets reactReport follows HSBC scandal, where bank allowed drug cartels to laundermillions

ByAnna Edwards

PUBLISHED:18:12 GMT, 6 Augus t 2012 | UPDATED: 16:00 GMT, 7 August 2012

British banking giant Standard Chartered is accused of exposing the US to terrorists and weapondealers by hiding $250 billion (160 billion) worth of transactions with the Iranian government.

Standard Chartered, one of the top five largest banks in the UK by market value, kept around 60,000transactions secret from US regulators over nearly 10 years, the New York State Department ofFinancial Services claimed today.

The bank, which employs nearly 90,000 people worldwide, has been called to appear before regulatorson August 15 to explain the apparent violations and defend its licence to trade on the New York StockExchange.

Its share price fell 18 percent as world markets reacted to the news, wiping 6 billion from the bank'svalue. Prices had already dropped six per cent after the accusations were made just before the close ofthe London market yesterday.

The investigations findings come after fellow British bank HSBC was accused of allowing drug cartelsand rogue states to launder billions of pounds through its US arm.

Scroll down for video
http://www.dailymail.co.uk/http://www.dailymail.co.uk/http://www.dailymail.co.uk/http://window.print%28%29/http://www.dailymail.co.uk/home/search.html?s=&authornamef=Anna+Edwardshttp://www.dailymail.co.uk/http://window.print%28%29/


8/18



Accused: Standard Chartered Bank 'operated as a rogue institution' by 'hiding Iranian

transactions'

In its findings report, the regulator said: 'For almost 10 years, SCB [Standard Chartered Bank] schemedwith the government of Iran and hid from regulators roughly 60,000 secret transactions, involving atleast $250bn, and reaping SCB hundreds of millions of dollars in fees.

'SCB's actions left the US financial system vulnerable to terrorists, weapons dealers, drug kingpins andcorrupt regimes, and deprived law enforcement investigators of crucial information used to track allmanner of criminal activity.

'In short, SCB (Standard Chartered Bank) operated as a rogue institution.'

The 27-page report claims the bank was 'apparently aided' by its consultant Deloitte & Touche inconcealing the information from regulators, the Guardian reported.

The findings include a memo sent in October 2006 from the banks US chief executive to the groupexecutive director in London raising concerns about the activities with Iran.

He said: 'Firstly, we believe (the Iranian business) needs urgent reviewing at the group level to evaluateif its returns and strategic benefits are... still commensurate with the potential to cause very serious oreven catastrophic reputational damage to the group.'

He added: 'Secondly, there is equally importantly potential of risk of subjecting management in US andLondon (for example you and I) and elsewhere to personal reputational damages and/or serious criminalliability.'


9/18



SCB will have to defend its license s o it can continue to trade on the New York Stock

Exchange, pictured.

To which the group executive director allegedly replied: 'You f****** Americans. Who are you to tell us,the rest of the world, that were not going to deal with Iranians.'

In another example the report shows one how in 2001 the bank was approached by Iran's central bankCBI/Markazi to act as recipient for daily oil sales from the National Iranian Oil Company.

Iranians warn the bank that revealing their identities to US banks would prompt 'unacceptable delays inclearing funds,' according to the report, the Guardian said.

Seeking legal advice, SCB was told it 'should ascertain that the payments are authorized'.

But it ignored the warning, instead 'conspired with Iranian clients to transmit misinformation to the NewYork branch by removing and otherwise misrepresenting wire transfer data that could identify Iranianparties,' the report claims.

The regulator claims that between January 2001 through to 2010, Standard Chartered conspired withIranian clients to route payments through New York after first stripping information from wire transfermessages used to identify sanctioned countries.

The bank moved the transactions through its New York branch on behalf of Iranian financial institutionsthat were subject to US economic sanctions, and then covered up the dealings, the banking regulatorclaimed.

The institutions included the Central Bank of Iran, as well as Bank Saderat and Bank Melli, both of which

are also Iranian state-owned institutions.

Benjamin Lawsky, superintendent of the New York State Department for Financial Services, claimed aStandard Chartered subsidiary in New York had also tried to do business with Libya, Burma and Sudan,the Guardian reported.


10/18


dailymail.co.uk//Standard-Chartered-Bank-Accused-hiding-160bn-transactions-Iran-U-S-gov ern

Another dirty reve lation: HSBC's David Bagley, left , and Paul Thurs ton, also of HSBC,

faced a US Senate hearing, which ended in Mr Bagley quitting. Now SBC face a

hearing to explain their actions

Financial transactions with Iran have been carefully subjected to strict terms since the 1970s.

Restricted, highly scrutinised transactions known as 'U-turns' were allowed as long as the money endedup in non-Iranian banks.

But the US treasury revoked U-Turn transactions in 2008 because it suspected Iran was using its banksto fund its highly controversial nuclear weapons and missile programmes and to channel money toterrorist groups.

According to Lawsky, Standard Chartered set up an operation known as 'Project Gazelle' aimed athelping Iranian banks put money through the US financial system.

Shares in the London-listed bank immediately plummeted in the last few seconds of trading when thedamning report was published just as London's stock market was closing for the day.

The attack on Standard Chartered is a heavy blow to its reputation, which until last night had beenregarded as the most solid of any of the London-listed banks after the 2008 taxpayer bailouts, the morerecent Libor rigging scandal at Barclays, and the money laundering offences at HSBC.

The shocking report follows the scandal of HSBC, which was discovered through a Senate investigationto have allowed rogue states and drugs cartels to launder billions of pounds through its US arm.

The findings, which accused HSBC of ignoring warnings and breaching safeguards that should havestopped the laundering of money from Mexico, Iran and Syria, led to the resignation of head ofcompliance David Bagley.

Britain's biggest bank allowed rogue states and drugs cartels to launder billions of pounds through itsbranches.

HSBC stands accused of fostering such a polluted culture it became a conduit for criminal enterprises.

Top executive David Bagley, head of HSBCs compliance division, sensationally quit in front of a USSenate hearing that exposed the scale of the scandal.


11/18



He had worked for HSBC for 20 years.

HSBC was warned that the total amount of fines and penalties levelled against it could be 'significantlyhigher' than the 445million set aside so far.

VIDEO: Analysts discuss what Standard Chartered's future looks like...

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1/9/12 HSBC exposed US and possibly India to terror funding

1/3zeenews.india.com/business//hsbc-exposed-us-and-possibly-india-to-terror-funding_55918.html

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November 9, 2012

12

Tags: HSBC Bank , HSBC money laundering , HSBC terror funding case , Terror

funding

HSBC exposed US and possibly India to terror

fundingLast Updated: Wednesday, July 18, 2012, 08:50

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Washington: Global banking giant HSBC failed in preventing money laundering by

drug cartels and terrorists not only in the US, but also other parts of the world,

possibly including India, a Senate Permanent Subcommittee on Investigations probe

has found.

"HSBC used its US bank as a gateway into the US financial system for some HSBC affiliates around

the world to provide US dollar services to clients while playing fast and loose with US banking

rules," Senator Carl Levin, the Chairman of the subcommittee, said following the release of the

investigation report in this regard.

According to the report, the Mexican affiliate of HSBC transported USD 7 billion in physical US

dollars to HSB-US from 2007 to 2008, outstripping other Mexican banks, even one twice its size,

raising red flags that the volume of dollars included proceeds from illegal drug sales in the US.

The investigations found that HSBC, with its headquarters in London, allowed affiliates in countries

such as Mexico, Saudi Arabia and Bangladesh to move billions of dollars in suspect funds into the

US without adequate controls.

According to the report running into 340 pages, HSBC in 2009 author ised its affiliate to supply

Indian rupees to Saudi Arabia's Al Rajhi Bank, which, the report said, has links to financing

terrorism.

"From 2007 to 2010, HBUS (HSBC-USA) continued to supply, through its London branch, hundreds

of millions of US dollars to Al Rajhi Bank in Saudi Arabia.

"In addition, at Al Rajhi Bank's request, HBUS expanded the relationship in January 2009, by

authorising its Hong Kong branch to supply Al Rajhi Bank with non-US currencies, including the

Thai bat, Indian rupee, and Hong Kong dollar," the report said.

However, no further details about the Indian rupees are available in the report.

According to the report, in 2010 HSBC launched a new funds transfer product called 'HBL Fast

Cash', which was designed to allow the instant transfer of funds from Riyadh, Saudi Arabia, to any

branch of the Habib Bank, the largest bank in Pakistan, whether or not the sender or recipient of

the funds had an account in either financial institution.

In a statement, Levin alleged that due to poor anti-money laundering controls, HSBC-US exposed

the US to Mexican drug money, suspicious travelers cheques, bearer share corporations, androgue jurisdictions.

"The bank's federal bank regulator, the OCC, tolerated HSBC's weak AML system for years. If an

international bank won?t police its own affiliates to stop illicit money, the regulatory agencies should

consider whether to revoke the charter of the US bank being used to aid and abet that illicit

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Related Stories

HSBC apologises for 'mistakes' in tackling

terror funding

Top HSBC official resigns; bank apologises

over money laundering scandal

HSBC money laundering probe: Bank's India

staff under scanner

money," he said.

Officials of HSBC and officials of the US Department of Treasury and Department of Homeland

Security are scheduled to testify before the committee later in the day.

The Subcommittee investigation focused on HSBC's key US affiliate, HSBC Bank USA, N.A., known

as HBUS, which functions as the US nexus for HSBC's worldwide network.

HSBC has 7,200 offices in more than 80 countries. HBUS has 470 branches across the US with 4

million customers.

HBUS provides accounts to 1,200 other banks, including more than 80 HSBC affiliates.

Called correspondent banking, HBUS provides these banks with US dollar services, including

services to move funds, exchange currencies, cash monetary instruments, and carry out other

financial transactions.

Correspondent banking can become a major conduit for illicit money flows unless US laws to

prevent money laundering are followed.

Reacting to the report from the Senate Sub-Committee,

HSBC said in a statement that it would apologise for

failing to meet regulatory and customer standards in the

past.

The bank said it recognises that its "controls could and

should have been stronger and more effective in order to

spot and deal with unacceptable behavior."

For decades, HSBC has been one of the most active

global banks in the Middle East, Asia, and Africa, despite

being aware of the terrorist financing risks in those regions, the panel report said.

"After the 9/11 terrorist attack in 2001, evidence began to emerge that Al Rajhi Bank and some of

its owners had links to financing organisations associated with terrorism, including evidence that

the bank's key founder was an early financial benefactor of al Qaeda.

"In 2005, HSBC announced internally that its affiliates should sever ties with Al Rajhi Bank, but then

reversed itself four months later, leaving the decision up to each affiliate. HSBC Middle East,

among other HSBC affiliates, continued to do business with the bank," it added.

The report also said that HSBC sent nearly 25,000 transactions involving USD 19.4 billion through

their HBUS accounts over seven years without disclosing the transactions' links to Iran.

In less than four years, HSBC cleared USD 290 million in suspicious US travellers cheques for a

Japanese bank, benefiting Russians who claimed to be in used car business.

The report revealed that HSBC offered more than 2,000 accounts to bearer in the name of bearer

"share corporations", which allows secrecy by assigning ownership to the person with physicalpossession of the shares.

In 2010, HSBC was cited by its federal regulator, the Office of the Comptroller of the Currency

(OCC), for multiple severe Anti-Money Laundering (AML) deficiencies.

These deficiencies include a failure to monitor USD 60 trillion in wire transfer and account activity; a

backlog of 17,000 unreviewed account alerts regarding potentially suspicious activity; and a failure

to conduct AML due diligence before opening accounts for HSBC affiliates.

Subcommittee investigators found that the OCC had failed to take a single enforcement action

against the bank, formal or informal, over the previous six years, despite ample evidence of AML

problems.

The report recommended a number of changes at HSBC?s US bank, including higher scrutiny of

HSBC affiliates for money-laundering risk, closing accounts of banks linked to terror financing, and

steps to ensure the bank does not process transactions with prohibited entities such as terrorists,

drug lords, and rogue regimes.

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14/18



It also recommended overhauling the AML controls on travellers cheques and eliminating bearer

share accounts.

PTI

First Published: Tuesday, July 17, 2012, 09:31

COMMENTS

Globalisation and Market Economy is the route sponsered by usa-asok ganguli -calcutta

Globalisation and Market Economy is the route sponsered by usa-asok ganguli -calcutta

Immediately RBI should held-up their all deposits with govtThey shou ld not be allowed for any more banking

activity in our soil-Prasant -Bolangir

it is a third rate bank, no proper systems and checks in place It`s the worst bank to bank with too-Priya -

The innocent customers and the s incere employees s hould not suffer because of the money laundering

schem es Mere Apologies canno t be the solution Strict Vigilance is required in International Money

TransactionsPoongodi B-Poongodi B -Coimbatore, India

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15/18

11/9/12 No amnesty to HSBC account holders: Government tells Lok Sabha - Economic Times

1/2indiatimes.com/2012-08-08/news/33100860_1_amnesty-scheme-account-holders-black-money

Tags: Swiss National Bank | Lok Sabha | HSBC Switzerland | HSBC | Central Board of Direct Taxes

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No amnesty to HSBC accountholders: Government tells Lok SabhaDeepshikha Sikarwar, ET Bureau Aug 8, 2012, 09.04PM IST

NEW DELHI: The government on Wednesday said the Central Board of Direct Taxes had not offered any tax

amnesty scheme to Indian account holders ofHSBC, Switzerland.

Minister of state for finance S S Palanimanickam replied in the negative to a written query in the Lok Sabha if

the CBDT, the apex direct taxes body, had offered any "amnesty scheme" to wealthy citizens who had

evaded taxes by hiding funds in accounts of Swiss unit of HSBC.

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India had year and a half back back received a list of 700 Indians from the French government about their

bank accounts in HSBC, Geneva.

The minister also made it clear that there was no plan to give amnesty to tackle the issue of black money.

The government had set up a committee under the CBDT Chairman to examine ways to strengthen laws to

curb the generation of black money in the country, its illegal transfer abroad and its recovery. The panel

submitted its report to the government in March 2012.

The minister informed the Lok Sabha that there is "no verifiable information" as to estimate black money

brought back to the country till date.

Also, there is no verifiable information to estimate money deposited in foreign accounts by Indian nationals,

"which is exclusive of their legitimate foreign deposits", he added.

Replying to another query, the minister said Swiss National Bank, the liability of Swiss banks towards

Indians as on December 31, 2011, was CHF 2.183 bill ion ($US 2.245 billion).

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18 July 2012, 14:03

HSBC Slammed By US As 'Pervasively Polluted'

A boss at HSBC has stepped down as a US Senate commi tteeinvestigates a money-laundering scandal at the bank.

Head of group compliance, David Bagley, said it was time for "someonenew to serve as the head" of his division, after the panel described a"pervasively polluted" cul ture at the bank.

HSBC was found to have lax controls that enabled it to act as financier for

clients seeking to launder suspected terror and drug money by the USHomeland Security and Governmental Affairs subcommittee.

Its report said shadowy funds from the world's most dangerous andsecretive corners, including Mexico, Iran, the Cayman Islands, Saudi

Arabia and Syria , sought access to the bank's US arm.

Mr Bagley, who had a 20 year career with the bank, said: "Despite thebest efforts and intentions of many dedicated professionals, HSBC hasfallen short of our own expectations and the expectations of ourregulators."

HSBC, Europe's largest bank, is expected to face a bill for fines andsettlements of up to $1bn (640m) as a result of the commi ttee's

findings."The culture at HSBC was pervasively polluted for a long time," CarlLevin, chairman of the Senate Permanent Subcommittee onInvestigations, said.

Because of lax controls against laundering, HSBC Bank USA "exposedthe United States to Mexican drug money" and other suspicious funds, Mr

Levin said.

The subcommittee found that HSBC Bank Mexico transported $7bn(4.5bn) in cash in armoured vehicles to the bank in 2007 to 2008 - andwas judged to be a "low risk" client.

The report says the drug cartels laundered money through the USdivision from 2002 to 2009.

And it found that the bank has to close 20,000 bank accounts on theCayman Islands.

In another case, HSBC and its US affiliate concealed more than $16bn ofsensitive transactions to Iran, violating US transparency rules.

The congressional probe detailed just how s weeping the problems have

been, both at the bank and at the top US bank regulator, said the Office ofthe Comptroller of the Currency (OCC).

It said the regulator failed to properly monitor HSBC.

The report is another damaging blow to the banking industry's reputation

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17/18

11/9/12 HSBC Slammed By US As 'Pervasively Polluted' | Orange UK

2/4web.orange.co.uk/article/news/report_hsbc_allowed_money_laundering

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and comes just weeks after the Libor rate-fixing scandal exploded, withBarclays admitting guilt and paying 290m in fines.

The year-long inquiry included a review of 1.4 million documents andinterviews with 75 HSBC officials and bank regulators.

Seeking to stem bad PR for the bank, its group compliance headannounced his resignation in front of the senate panel on Tuesday.

The bank and the regulator are expected to face tough questions at ahearing today about how the abuses were allowed to continue, even afterthe OCC took regulatory action against HSBC in 2010.

Reports indicated there were persistent and troubling lapses in the

bank's anti-money laundering compliance s ince 2010.

In a statement, HSBC said the Senate report had provided "importantlessons for the whole industry in seeking to prevent illicit actors enteringthe global financial s ystem".

The bank said it is s pending more money on compliance and hasbecome more coordinated in policing high-risk transactions.

The report also contained strong criticism of the OCC, saying theregulator failed to crack down on the bank despite multiple red flags,

allowing money laundering issues "to accumulate into a mas siveproblem".

Newly appointed OCC head Thomas Curry said that anti-moneylaundering compliance "is crucial to our nation's efforts to combatcriminal activity and terrorism, and the OCC expects national banks and

federal thrifts to have programmes in place to effectively comply withthese laws".

In condemning the actions of the bank and inaction of the watchdog, MrLevin raised the issue of national security.

"In an age of international terrorism, drug violence in our streets and onour borders, and organised crime, stopping illicit m oney flows thatsupport those atrocities is a national security imperative," Mr Levin said.

The bank said in its s tatement that it changed its senior m anagement

last year and agreed to strengthen its compliance with rules to preventmoney laundering.

"We... recognise that our controls could and should have been strongerand more effective in order to spot and deal with unacceptable

behaviour," the bank said in the statement.

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11 comments sort by: oldest to newest

score: 5Michael Mcardle8:22 am on 17/7/2012

is there nothing these thieving low life bankers are not involved

in. it seems we have som e of the biggest criminals in theworld running our financial systems. while our prisons areoverflowing with petty criminals the mr bigs are operating onthe outside with total impunity. its time changes were made.we need to investigate and severley punish these dishonest

hypocrites who have been filling their bank balances at theexpense of the rest of us

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score: 3gengisken12278:33 am on 17/7/2012

This is of course nonesense, no bank is m ore corrupt than anamerican. Yanks finding a foreign bank to blame, unfortunately

for HSBC, they didn't pay campaign (brown envalope) m oney to

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18/18

11/9/12 HSBC fears US anti-money laundering penalty may top $1.5 billion - The Times of India

HSBC fears US anti-money

laundering penalty may top $1.5

billion

Tweet 0Bloomberg | Nov 6, 2012, 11.07A M IST

LONDON: HSBC Holdings said it's likely to face

criminal charges from US anti-money laundering

probes and the cost of a settlement may "significantly" exceed the $1.5 billion the

bank has already set aside.

The bank made an additional $800 million provision in the third quarter to cover the costs of the investigation, adding to the $700 million it had

already earmarked.

HSBC also put aside more than $357 million in the period to compensate UK clients wrongly sold payment-protection insurance on loans as it

posted an increase in pretax profit that missed analysts' estimates.

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"The final amount of the financial penalties could be higher, possibly significantly higher," HSBC said in a statement today. "The resolution of at

least some of these matters is likely to involve the filing of corporate criminal as well as civil charges."

Chief Executive Officer Stuart G ulliver's attempts to reduce costs at the bank are being hobbled by the US probes and compensation claims from

UK clients. A Senate comm ittee said in July that failures in HSBC money-laundering controls allowed terrorists and drug cartels access to the US

financial system.

Standard Chartered Plc, which like HSBC makes most of its profit in Asia, paid $340 million in August to settle a regulator's claim it broke Iranian

sanctions rules.

"The size of the provision is a shock," said Simon Maughan, a financial industry strategist at Olivetree Securities Ltd. in London. "There was a huge

fuss made about Standard Chartered's fine, but this far exceeds that."

Underlying pretax profit, which excludes acquisitions and disposals aswell as accounting losses on the fair value of the lender's own debt, rose to

$5.04 billion in the third quarter from $2.24 billion in the year-earlier period, missing the $5.6 billion median estimate of eight analysts surveyed

by Bloomberg.

Underlying income, at $16.1 billion, missed the $16.5 billion estimate of Gary G reenwood, a banking analyst at Shore Capital Ltd. in Liverpool,

England.

Gulliver, w ho became CEO in January 2011, is seeking to cut costs by $2.5 billion to $3.5 billion and revive profit by selling assets to focus on

emerging economies in which the bank has a greater market share. The savings are likely to exceed that range and be met by the end of 2013,

HSBC said.

Costs as a proportion of revenue increased to 71% from 50% in the year-earlier period, outside Gulliver's 48% to 52% target range, as the lender set

aside more for the potential US fines and PPI claims.

"Today's cost performance is very disappointing," Maughan said. "It raises a question mark about how rapidly these efficiencies can be made byGulliver and his team."

HSBC has been in talks with US regulators over allegations it laundered funds of sanctioned nations including Iran and Sudan. The probes

prompted Standard & Poor's to question whether the lender, Europe's largest b

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