Compliance
HSBC Says It Could Face Criminal, Civil Charges Over AML Probe, Iran Mentioned
HSBC has said it could face criminal or civil charges in the US from a developing investigation into allegedly illegal financial transactions, with some of these activities tied to Iran.
HSBC has said it could face criminal or civil charges in the US from a developing investigation into allegedly illegal financial transactions, with some of these activities tied to Iran.
The disclosure, made in a regulatory filing with the Securities and Exchange Commission, showed that inquiries about the activities of the UK/Hong Kong-listed bank have taken an increasingly serious turn. In late January, it was reported that the firm was being probed by a US Senate panel in a money-laundering enquiry.
In a statement, HSBC referred to dealings with “Iranian parties” as a subject of US action.
“We continue to cooperate in ongoing investigations by the US Department of Justice, the New York County District Attorney’s Office, the Office of Foreign Assets Control, the Federal Reserve and the OCC regarding historical transactions involving Iranian parties and other parties subject to OFAC economic sanctions,” the statement, published on the bank’s website, said.
“The investigations are ongoing. Based on the facts currently known, we are unable at this time to determine the terms on which the ongoing investigations will be resolved or the timing of such resolution or for us to estimate reliably the amounts, or range of possible amounts, of any fines and/or penalties. As matters progress, it is possible that any fines and/or penalties could be material to our financial statements,” the statement said.
Reports said the Manhattan district attorney and Justice Department have settled with a number of European banks that operated transfer systems for Iranian clients.
The bank spoke of possible “imposition of civil money penalties, criminal fines and other sanctions relating to activities that are the subject of the AML/BSA Consent Orders”.
In April last year, HSBC Bank USA received a subpoena from the SEC directing the bank to produce records in the US related to, among other things, HSBC Private Bank Suisse’s cross-border policies and procedures, as well as adherence to US broker-dealer and investment advisor rules when dealing with US-resident clients.
