Was HSBC involved in money laundering?
Payments
Asked by Question Bot01/Dec/20161 answer
1 Answer
F
Faisal Khan
Answered 01/Dec/2016
Was HSBC itself laundering money. No it wasn't. Was the bank being used to launder money, yes it was.
Why you ask? Simple answer: loophole/hack of having a bank with weak-controls.
The main issue at the time was the deficiencies in the anti-money laundering system within HSBC that cause its bank to be used for money laundering. Such deficiencies resulted in over 17,000 suspect transactions that should not have gone through (or at least be flagged), to go through.
All in all, HSBC did not have adequate controls in place, which it should have to monitor the US$ 60 Trillion in wire activity that the bank performed.
Because HBUS (HSBC US) was the conduit, the US financial system was exposed to the laundered money.
Why you ask? Simple answer: loophole/hack of having a bank with weak-controls.
The main issue at the time was the deficiencies in the anti-money laundering system within HSBC that cause its bank to be used for money laundering. Such deficiencies resulted in over 17,000 suspect transactions that should not have gone through (or at least be flagged), to go through.
All in all, HSBC did not have adequate controls in place, which it should have to monitor the US$ 60 Trillion in wire activity that the bank performed.
Because HBUS (HSBC US) was the conduit, the US financial system was exposed to the laundered money.