• Connect with us on Linkedin

HSBC Fined for Money Laundering in Argentina

Argentina's financial crimes unit will fine the local branch of London-based bank HSBC some $1 million dollars for failing to report a money laundering case, as part of an investigation into the bank's weak anti-money laundering controls. 

Linkedin
Google +

As Clarin reports, the financial crime unit stated that HSBC would be fined for failing to report a suspicious transaction carried out in 2007. The case involved a client who moved five million pesos (about $941,530) into a bank account. The money was then extracted from the bank account over a month. 

HSBC did not consider any of these transactions suspicious, even though the client involved had no declared assets and a monthly income that was officially reported as less than $3,000. The bank only reported the incident in 2010.

Argentina's tax authority filed criminal charges against HSBC earlier this year. At the time, the agency head accused the bank of helping businesses evade taxes and launder up to $121 million. 

Last year, the bank faced similar accusations in the US, after a Senate report found that the bank had enabled Mexican drug cartels to launder their proceeds. Organizations like the Sinaloa Cartel were reportedly able to purchase equipment such as turboprop aircraft via HSBC accounts. The bank eventually agreed to pay a .9 billion settlement

InSight Crime Analysis

This is not the first time that HSBC has faced fines in Argentina. The financial crimes unit fined the bank million last year, for failing to report several suspicious transactions that took place inside the country in 2008. This was followed by another million fine in December 2012

If Argentina's courts apply further penalties to HSBC for allowing such irregular activity, the bank will face even tougher days ahead. Additionally, if the criminal case against the bank continues to move forward in Argentina, it would stand in sharp contrast to the US, where authorities refrained from prosecuting bank officials. 

 

Linkedin
Google +

---

What are your thoughts? Click here to send InSight Crime your comments.

We also encourage readers to copy and distribute our work for non-commercial purposes, provided that it is attributed to InSight Crime in the byline, with a link to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

InSight Crime Search

The Complete Organized Crime Database on the Americas

InSight Crime Social

facebooktwittergooglelinkedin

Most Read

2 Divergent Views on El Salvador Gang Truce, 1 Sad Conclusion

2 Divergent Views on El Salvador Gang Truce, 1 Sad Conclusion

Two wildly divergent views of what is happening with the truce between El Salvador's two foremost gangs converge in one important way: they both paint a bleak picture for the near future of the fragile...

Read more

Uncertainty Swirls Around Mexico Vigilantes Disarmament 'Agreement'

Uncertainty Swirls Around Mexico Vigilantes Disarmament 'Agreement'

A vigilante leader in Mexico's Michoacan state has promised the groups will disarm by May 10, but details about what their agreement with the government entails are hazy, and it remains to be seen whether...

Read more

Ecuador Car Theft Rings Fuel Billion Dollar Transnational Trade

Ecuador Car Theft Rings Fuel Billion Dollar Transnational Trade

In 2013, Ecuador lost around $22 million and over 7,000 vehicles to car theft, a lucrative international trade that connects street level thieves to transnational organized crime groups.

Read more