Follow up to HSBC Laundered Money For Drug Lords, Rogue States, and Terrorists.
HSBC's boss said on Monday revelations of lax anti-money laundering controls had been "shameful and embarrassing" for Europe's biggest bank, and may force it to pay out well over $2 billion for those flaws and in compensation for UK mis-selling.
HSBC set aside $700 million to cover fines and other costs for an anti-money laundering scandal, after a U.S. Senate report criticised it this month for letting clients shift funds from dangerous and secretive countries, notably Mexico.
The ultimate cost could be "significantly higher", the bank's Chief Executive Stuart Gulliver said.
In the wake of the scandal HSBC's compliance director has resigned, from Bloomberg:
HSBC Holdings Plc (HSBA)’s head of group compliance, David Bagley, told a Senate hearing he will step down amid claims the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering.
But beyond the general admissions there was one extremely troubling revelation that came out of the hearings. From Business Insider's Report Shows How HSBC Maintained Its Ties With One Of Osama Bin Laden's Key Benefactors:
Yesterday, the Senate released a report on HSBC's ties to the darkest actors in global finance. Today, the details of the 335 page investigation are trickling out and shocking everyone...
One of the most damning parts of the report details HSBC's relationship with Saudi based Al Rajhi Bank, a member of Osama bin Ladin's 'Golden Chain' of important Al Qaeda financiers. The relationship has spanned decades, perhaps that is why even when HSBC's own internal compliance offices asked that it be terminated in 2005, even when the US government discovered hard evidence of Al Rajhi's relationship with terrorism, HSBC continued to business with the bank until 2010...
It doesn't stop there: Al Rahji is also known for financial services to 9/11 hijacker Abdulaziz al Omari, who was on American Airlines flight 11.
Why do they hate us? They
Occupy Wall Street before it occupies you.