HSBC Holdings Plc did business with firms linked to terrorism, let money-laundering safeguards in its Mexico operations erode and circumvented U.S. sanctions against Iran, according to US Senate investigators.
The Permanent Subcommittee on Investigations released a 335-page report today detailing a decade of lax controls that allowed HSBC affiliates around the world to give terrorists, drug cartels and other criminals a portal into the US financial system. Lawmakers plan to question senior executives from Europe’s largest bank at a hearing in Washington tomorrow.
“HSBC used its US bank as a gateway into the U.S. financial system for some HSBC affiliates around the world to provide U.S. dollar services to clients while playing fast and loose with U.S. banking rules,” said Senator Carl Levin, the Michigan Democrat who heads the subcommittee. “The failure of accountability here is dramatic.”
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