Editing HSBC (section)

===Money laundering===
In both 2003 and 2010, U.S. regulators ordered HSBC to strengthen its anti-money laundering practices.<ref name="CNNMoney_Dec_12_2012">[https://money.cnn.com/2012/12/12/news/companies/hsbc-money-laundering/index.html HSBC: Too big to jail?], ''CNNMoney'', James O'Toole, 12 December 2012.</ref> In October 2010, the United States [[Office of the Comptroller of the Currency|OCC]] issued a [[Cease and desist|Cease and Desist Order]] requiring HSBC to strengthen multiple aspects of its Anti-Money Laundering (AML) program. The identified problems included a once massive backlog of over 17,000 alerts identifying suspicious activity, failure to file timely [[suspicious activity report]]s with U.S. law enforcement, failure to conduct any [[due diligence]] to assess risks to HSBC affiliates before opening [[correspondent account]]s for them, a three-year failure by [[HSBC Bank USA|HBUS]] from mid-2006 to mid-2009 to conduct any AML of $15&nbsp;billion in bulk cash transactions from those same HSBC affiliates, failure to monitor $60&nbsp;trillion in annual wire transfers by customers in countries rated lower risk by HBUS, and inadequate and unqualified AML staffing, resources, and leadership. It was noted that HSBC fully cooperated with the Senate investigation.<ref>[https://www.senate.gov/general/search/search_cfm.cfm?q=HSBC+Case+History&site=default_collection&num=10&filter=0&x=0&y=0 U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History] [PDF file], Carl Levin, Chair, Tom Coburn, Ranking Minority, 17 July 2012 Hearing. See especially page 3 [8 in PDF].</ref>

In 2012, HSBC was fined by $14&nbsp;million by Argentina for failure to report suspicious transactions in the country in 2008.<ref>{{Cite web|title=British Bank Fined for Money Laundering in Argentina|url=https://www.occrp.org/en/daily/1979-british-bank-fined-for-money-laundering-in-argentina|access-date=3 October 2021|website=www.occrp.org|language=en-GB}}</ref>

On 19 July 2012, India investigated alleged violation of safety compliance, in which Indian employees were believed to be involved.<ref>{{cite news| url=https://timesofindia.indiatimes.com/india/Will-get-to-bottom-of-HSBC-staff-violating-safety-norms-Govt-on-money-laundering-allegations/articleshow/15044843.cms| archive-url=https://archive.today/20130126060553/http://articles.timesofindia.indiatimes.com/2012-07-19/india/32746540_1_safety-norms-financial-action-task-force-hsbc-s-india| url-status=live| archive-date=26 January 2013| work=[[The Times of India]]| title=Will get to bottom of HSBC staff violating safety norms: Govt on money laundering allegations| date=19 July 2012 }}</ref> On 9 November 2012, Indian activist and politician [[Arvind Kejriwal]] said he had details of 700 Indian bank accounts hiding black money with a total value of {{INRConvert|60|b}} with HSBC in [[Geneva]].<ref>{{cite news|last=Sanyal|first=Prasad|title=Arvind Kejriwal targets HSBC, Mukesh Ambani over black money|url=http://www.ndtv.com/article/india/arvind-kejriwal-targets-hsbc-mukesh-ambani-over-black-money-290629|access-date=9 November 2012|newspaper=NDTV|date=9 November 2012}}</ref> In June 2013, a media outlet in India did an undercover expose where HSBC officers were caught on camera agreeing to launder "black money." HSBC placed these employees on leave pending their own internal investigation.<ref>[https://web.archive.org/web/20130620201245/http://ibnlive.in.com/news/stanchart-hsbc-officials-caught-on-camera-offering-to-launder-money/399864-3.html Standard Chartered, HSBC officials caught on camera offering to launder money], CNN-IBN & Cobrapost, Syed Masroor Hasan, Rohit Khanna, updated 18 June 2013.</ref>

In November 2012, it was reported that HSBC had set up offshore accounts in [[Jersey]] for suspected drug-dealers and other criminals, and that [[HM Revenue and Customs]] had launched an investigation following a [[whistleblower|whistle blower]] leaking details of £700&nbsp;million allegedly held in HSBC accounts in the Crown dependency.<ref>{{cite news |url=https://www.theguardian.com/business/2012/nov/09/hsbc-jersey-accounts-uk-tax-hmrc |title=HSBC Jersey accounts investigated by UK tax authorities |access-date=24 February 2020 |work=Guardian |date=9 November 2012 |location=London |first=Simon |last=Bowers |archive-date=26 September 2014 |url-status=live |archive-url=https://web.archive.org/web/20140926064559/https://www.theguardian.com/business/2012/nov/09/hsbc-jersey-accounts-uk-tax-hmrc}}</ref>

Following search warrants and raids beginning in January 2013, in mid-March 2013 Argentina's main taxing authority accused HSBC of using fake receipts and dummy accounts to facilitate money laundering and tax evasion.<ref>[http://www.buenosairesherald.com/article/126690/afip-denounces-hsbc-with-moneylaundering-tax-evasion AFIP denounces HSBC with money-laundering, tax evasion], Buenos Aires Herald, 18 March 2013.</ref><ref>[https://www.bbc.co.uk/news/business-21840052 HSBC faces new money laundering claims in Argentina], BBC, 18 March 2013.</ref><ref>[https://www.cbsnews.com/news/argentina-hsbc-helped-launder-money-evade-taxes/ Argentina: HSBC helped launder money, evade taxes], CBS News, Associated Press (New York), 18 March 2013.</ref>

In early February 2013, appearing before UK's Parliamentary Banking Standards Commission, CEO Stuart Gulliver acknowledged that the structure of the bank had been "not fit for purpose." He also stated, "Matters that should have been shared and escalated were not shared and escalated."<ref name="Independent_Feb_6_2013">[https://www.independent.co.uk/news/business/news/terrorists-and-drug-lords-targeted-hsbc-bosses-admit-8483303.html Terrorists and drug lords targeted HSBC, bosses admit], The Independent [UK], Simon English, 6 February 2013.</ref> HSBC has also been accused of laundering money for terrorist groups.<ref name="Independent_Feb_6_2013" /><ref>[https://www.bloomberg.com/news/2013-01-30/hsbc-names-tax-police-and-anti-terror-chiefs-to-controls-team.html HSBC Hires Tax, Anti-Terror Chiefs for Controls Panel], Bloomberg, Howard Mustoe, 30 January 2013.</ref>

In June 2015, HSBC was fined by the Geneva authorities after an investigation into money laundering within its Swiss subsidiary. The fine was 40 million Swiss Francs.<ref>{{cite web|url=https://www.theguardian.com/business/2015/jun/04/hsbc-fined-278m-over-money-laundering-claims|title=HSBC pays out £28m over money-laundering claims|date=4 June 2015|work=The Guardian|access-date=14 April 2017}}</ref>

In 2018, HSBC was fined 15 million rand by South Africa's central bank for weaknesses in its processes meant to detect money laundering and terrorism financing, though it also added that HSBC was not found to have facilitated any transactions involving money laundering or the financing of terrorism in South Africa.<ref>{{Cite news|date=9 November 2018|title=South African central bank fines HSBC for lax money laundering controls|language=en|work=Reuters|url=https://www.reuters.com/article/uk-hsbc-fine-safrica-idUKKCN1NE1YT|access-date=3 October 2021}}</ref>

In 2020, HSBC told AUSTRAC that it may have broken Australia's anti money laundering and counter-terrorism laws after allegedly failing to report thousands of transactions to AUSTRAC.<ref>{{Cite news |last=Ryan |first=Peter |date=8 April 2020 |title=HSBC flags potential anti-money laundering law breaches |language=en-AU |work=ABC News |url=https://www.abc.net.au/news/2020-04-08/banking-giant-hsbc-flags-potential-money-laundering-breaches/12132454 |access-date=3 October 2021}}</ref><ref>{{Cite news|date=8 April 2020|title=HSBC reports potential money laundering breaches in Australia|language=en|work=Reuters|url=https://www.reuters.com/article/us-hsbc-hldg-australia-idUKKBN21Q1TQ|access-date=3 October 2021}}</ref>

In July 2021, HSBC disclosed that in 2016 it discovered a suspected money laundering network that received $4.2&nbsp;billion worth of payments which has raised questions over whether it disclosed this appropriately to US monitors as the bank was still under probation by U.S. authorities over anti-money laundering concerns.<ref>{{Cite web|date=28 July 2021|title=HSBC faces questions over disclosure of alleged money laundering to monitors|url=http://www.theguardian.com/business/2021/jul/28/hsbc-faces-questions-over-disclosure-of-alleged-money-laundering-to-monitors|access-date=3 October 2021|website=the Guardian|language=en}}</ref><ref>{{Cite web|title=Money-laundering ring pushed $4billion through HSBC|url=https://www.thebureauinvestigates.com/stories/2021-07-28/money-laundering-ring-pushed-4.2bn-through-hsbc|access-date=3 October 2021|website=The Bureau of Investigative Journalism (en-GB)|language=en}}</ref>

In December 2021, HSBC was fined 64 million pounds ($85&nbsp;million) by British regulators for failings in its anti-money laundering processes spanning eight years.<ref>{{Cite news|url=https://www.reuters.com/business/hsbc-fined-85-mln-uk-anti-money-laundering-failings-2021-12-17/|title=HSBC fined $85 mln for UK anti-money laundering failings|first=Iain|last=Withers|newspaper=Reuters|date=17 December 2021|via=www.reuters.com}}</ref>

====US Senate investigation (2012)====
In July 2012, a US Senate committee issued a report<ref>{{Cite report |date=17 July 2012 |title=U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History |url=http://www.hsgac.senate.gov/download/report-us-vulnerabilities-to-money-laundering-drugs-and-terrorist-financing-hsbc-case-history |publisher=United States Senate |pages=113–188 |access-date=7 February 2016 |archive-date=11 March 2016 |archive-url=https://web.archive.org/web/20160311202446/http://www.hsgac.senate.gov/download/report-us-vulnerabilities-to-money-laundering-drugs-and-terrorist-financing-hsbc-case-history |url-status=dead }}</ref> which stated that HSBC had been in breach of money-laundering rules, and had assisted Iran and North Korea to circumvent US nuclear-weapons sanctions.<ref>{{cite web |url=https://www.bloomberg.com/news/articles/2012-07-16/hsbc-aided-money-laundering-by-iran-drug-cartels-probe-shows |title=HSBC Executive Resigns at Senate Money-Laundering Hearing |last1=Hamilton |first1=Jesse |last2=Voreacos |first2=David |date=23 July 2012 |website=Bloomberg Business |access-date=7 February 2016 |quote=An outside audit by Deloitte LLP showed that 25,000 transactions totaling more than $19.4 billion involved Iran, according to the report. Of those, as many as 90 percent passed through the bank's U.S. accounts with no disclosure of ties to Iran, the report shows. Senate investigators documented similar transactions from a list of other prohibited jurisdictions including North Korea, Cuba, Sudan and Burma.}}</ref><ref>{{cite web |url=https://www.bbc.co.uk/news/business-20673466 |title=HSBC to pay $1.9bn in US money laundering penalties |last1=Peston |first1=Robert |date=11 December 2012 |website=BBC News (Business) |access-date=7 February 2016 |quote=The Senate report also said HSBC regularly circumvented restrictions on dealings with Iran, North Korea, and other states subject to US sanctions.}}</ref>

In December 2012, Assistant U.S. Attorney General [[Lanny A. Breuer|Lanny Breuer]] suggested that the U.S. government might resist criminal prosecution of HSBC which could lead to the loss of the bank's U.S. charter. He stated, "Our goal here is not to bring HSBC down, it's not to cause a systemic effect on the economy, it's not for people to lose thousands of jobs."<ref name="CNNMoney_Dec_12_2012" />

In December 2012, HSBC was penalised $1.9&nbsp;billion (US), the largest fine under the [[Bank Secrecy Act]], for violating four U.S. laws designed to protect the U.S. financial system.<ref name="theglobeandmail.com">{{cite news|last1=Mollenkamp |first1=Carrick |last2=Wolf |first2=Brett |url=https://www.theglobeandmail.com/report-on-business/international-business/hsbc-to-pay-record-19-billion-fine-in-us-money-laundering-case/article6189108/ |title=HSBC to pay record $1.9-billion fine in U.S. money-laundering case |work=The Globe and Mail|date=11 December 2012 |access-date=14 July 2013 |location=Toronto}}</ref> HSBC had allegedly laundered at least $881&nbsp;million in drugs proceeds through the U.S. financial system for international cartels, as well as processing an additional $660&nbsp;million for banks in US sanctioned countries. According to the report, "The U.S. bank subsidiary [also] failed to monitor more than $670 billion in wire transfers and more than $9.4 billion in purchases of physical dollars from its Mexico unit."<ref name="theglobeandmail.com" /> As part of the agreement deferring its prosecution, HSBC acknowledged that for years it had ignored warning signs that drug cartels in Mexico were using its branches to launder millions of dollars, and also acknowledged that HSBC's international staff had stripped identifying information on transactions made through the United States from countries facing economic sanctions such as Iran and Sudan.<ref name="CNNMoney_Dec_12_2012" />

A December 2012 ''[[CNN Business|CNNMoney]]'' article compared the 1.9&nbsp;billion dollar fine to HSBC's profit "last year" (2011) of 16.8&nbsp;billion.<ref name="CNNMoney_Dec_12_2012" />

In 2016, HSBC was sued by American families involved in deaths by organized-crime gangs for processing funds ("money laundering") for the Sinaloa cartel.<ref>{{cite news|url=https://www.theguardian.com/business/2016/feb/11/families-of-americans-killed-by-mexican-cartels-sue-hsbc|title=The Guardian – Families of Americans killed by Mexican cartels sue HSBC for laundering billions|last=Dart|first=Tom|date=11 February 2016|access-date=5 June 2016}}</ref>

==== FinCEN Files (2020) ====
The [[FinCEN Files]] showed that HSBC continued to serve alleged criminals and corporations involved in government corruption, including $292&nbsp;million for the Waked Family company Viva Panama between 2010 and 2016 before the [[United States Department of the Treasury]] declared it a drug money-laundering organization. HSBC's activities took place while the bank was under probation from the U.S. government; six former HSBC employees reported to the [[International Consortium of Investigative Journalists]] that the deferred prosecution agreement for HSBC marked a "cultural shift" in the organization toward profit-making motives. Employees working in compliance at HSBC also expressed concern to Buzzfeed about what they felt were inadequate efforts to combat money laundering, including hasty investigations and unachievable internal investigation quotas.<ref>{{Cite web|title=The Untold Story Of What Really Happened After HSBC, El Chapo's Bank, Promised To Get Clean|url=https://www.buzzfeednews.com/article/anthonycormier/hsbc-money-laundering-drug-cartels|access-date=24 February 2021|website=BuzzFeed News|date=21 September 2020 |language=en}}</ref><ref>{{Cite web|date=21 September 2020|title=HSBC moved vast sums of dirty money after paying record laundering fine|url=http://www.icij.org/investigations/fincen-files/hsbc-moved-vast-sums-of-dirty-money-after-paying-record-laundering-fine/|access-date=24 February 2021|website=ICIJ|language=en-US}}</ref> In response to the report HSBC said it is "continually seeking ways to improve" its financial crime compliance regime.<ref>{{Cite web|title=Here Is How Banks Have Responded To The FinCEN Files Investigation|url=https://www.buzzfeednews.com/article/buzzfeednews/bank-responses-fincen-files|access-date=24 February 2021|website=BuzzFeed News|date=20 September 2020 |language=en}}</ref>