Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  HSBC Holdings    HSBA   GB0005405286

HSBC HOLDINGS (HSBA)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets
OFFRE

HSBC : shut down accounts linked to Gupta scandal

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/10/2017 | 08:54pm CEST

HSBC has revealed that it closed accounts linked to South Africa’s Gupta family corruption investigation, admitting for the first time concerns about its potential ties to the snowballing scandal.

The bank said it had also flagged up its concerns to the financial crime expert who has overseen its money-laundering controls since it was fined a record $1.9bn in 2012 for processing cash for Mexican drug lords and terrorists.

Regulators in the UK are already looking into whether HSBC and another bank, Standard Chartered, had ties to the Guptas after former cabinet minister Lord Hain passed a list of transactions to the chancellor warning of their “possible criminal complicity”.

HSBC admitted on Friday that it was forced to close bank accounts held by “front companies” associated with the Guptas.

The bank has previously declined to comment on its involvement, but revealed its concerns after details of transactions linked to the Guptas emerged.

The bank said: “HSBC has been reviewing its exposure to the Guptas for some time, and has closed a number of accounts for associated front companies wherever we have found them.

“As we identify or are presented with new information, we will continue to investigate further and take appropriate action.”

HSBC is understood to have closed the accounts in 2014, the same year that Standard Chartered said it had shut down accounts linked to the Guptas.

It also notified Michael Cherkasky, who monitors the bank’s anti-money laundering controls as a condition of its 2012 settlement with the US Department of Justice and the UK’s Financial Conduct Authority (FCA).

The bank issued a statement in response to evidence contained in the GuptaLeaks, a tranche of files released in South Africa and reported in the Wall Street Journal.

The documents reportedly reveal that HSBC bank accounts in Dubai were used to channel millions of dollars via companies linked to contracts to sell Chinese rail locomotives to South Africa.

The contracts are being examined as part of an ongoing corruption investigation into whether the wealthy Gupta family benefited from wielding influence over South Africa’s president Jacob Zuma.

Hain, who first raised concerns about UK banks’ links to the Guptas last month, said“This demonstrates yet again that any global company doing any business with the Guptas or Zumas is guaranteed to be badly contaminated, just as Bell Pottinger was going bankrupt, and KPMG, McKinsey and SAP have also been.

Banks like HSBC must not be conduits for alleged money-laundering, Hain said, adding that all the evidence points to not just HSBC but other banks having been such conduits.

The Guptas, who have not responded to requests for comment about the allegations by the Guardian, have previously denied any wrongdoing.

Fresh detail about transactions involving HSBC could lead to the bank facing investigation by US authorities, because they were made in dollars and cleared by the bank’s New York office.

The FBI is already examining whether businesses linked to the Guptas moved money through the American financial system, according to reports in the US.

The bank has been battling to increase its resilience to financial crime since the 2012 fine, when it reached a settlement with the US authorities over allegations it had allowed money from the Sinaloa drug cartel to be laundered via its Mexican branches.

As part of the deferred prosecution agreement (DPA) Cherkasky was installed in July 2013 to oversee HSBC’s efforts to clean up its act.

The bank has said it is on track to have its anti-money laundering and sanctions policy framework in place by the end of this year, although Cherkasky has uncovered issues along the way.

“HSBC is determined to prevent criminals from accessing the financial system,” the bank said.

“This is inherently challenging because those who seek to launder money are often extremely sophisticated, hiding behind legitimate companies, layers of front companies, connected parties and individuals that have controlling interests in the subject companies.

In February HSBC revealed it was investigated by the FCA over potential breaches of money laundering rules that had been highlighted by Cherkasky.

Cherkasky’s final report is thought to be scheduled for next March, after which it will be up to the DoJ to decide whether the terms of the DPA have been met.

On Friday Standard Chartered had its DPA – originally agreed around the same time as HSBC’s – extended for a second time, until July 2018.

Copyright © 2017 theguardian.com. All rights reserved., source Guardian Online

Stocks mentioned in the article
ChangeLast1st jan.
HSBC HOLDINGS 0.15% 677.1 Delayed Quote.-11.85%
STANDARD CHARTERED 0.03% 637.9 Delayed Quote.-18.25%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HSBC HOLDINGS
12:40pHSBC : UAE aims to hit $1bn revenues in next three to five years
AQ
09/24HSBC : Director/PDMR Shareholding - 24 September 2018 (2-page PDF 14KB)
PU
09/24'MANUDIYA SAVIYA' : Social business model at work to provide safe drinking water
AQ
09/24HSBC : Issuance of perpetual subordinated contingent convertible securities (3-p..
PU
09/24HSBC : Sachin and Olga to take wing to Shanghai
AQ
09/24GOLF : Sachin and Olga to take wing to Shanghai
AQ
09/24HSBC : Overseas Regulatory Announcement - HSBC Holdings plc grant of share optio..
PU
09/24HSBC : Grant of share options - Announcement made to the HK stock exchange - Eng..
PU
09/23HSBC : Saudia Cargo secures SAR 1.2 billion Islamic loan
AQ
09/23Saudi Electricity to issue $2 billion dual-tenor Sukuk
AQ
More news
News from SeekingAlpha
09/19Goldman +2.4% as new investment co-chief named, investing app developments 
08/30Blockchain Adoption Ramping Up In Asia 
08/29BIG BANKS WIN DISMISSAL OF BOND-RIGG : Reuters 
08/26Is HSBC's High-Dividend Yield An Opportunity? 
08/12The Turkish Hamam Is Getting Too Hot For European Banks. Avoid The Bazaar! 
Financials ($)
Sales 2018 54 851 M
EBIT 2018 20 876 M
Net income 2018 13 981 M
Debt 2018 -
Yield 2018 5,83%
P/E ratio 2018 12,74
P/E ratio 2019 11,81
Capi. / Sales 2018 3,21x
Capi. / Sales 2019 3,03x
Capitalization 176 B
Chart HSBC HOLDINGS
Duration : Period :
HSBC Holdings Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends HSBC HOLDINGS
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 21
Average target price 10,2 $
Spread / Average Target 15%
EPS Revisions
Managers
NameTitle
John M. Flint Group Chief Executive Officer & Executive Director
Mark Edward Tucker Non-Executive Group Chairman
Andrew Mitchell Maguire Group Chief Operating Officer
Iain James Mackay Executive Director & Group Finance Director
Darryl West Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
HSBC HOLDINGS-11.85%175 963
JP MORGAN CHASE & COMPANY10.20%392 282
BANK OF AMERICA4.13%307 039
INDUSTRIAL AND COMMERCIAL BANK OF CHINA-7.26%288 539
WELLS FARGO-9.36%261 324
CHINA CONSTRUCTION BANK CORPORATION-6.12%233 726