HSBC's Swiss Arm Found in Violation of Money-Laundering Rules

HSBC’s Swiss private banking arm breached money-laundering rules by failing to conduct adequate checks on high-risk accounts of two politically exposed individuals, as found by Switzerland’s Financial Market Supervisory Authority (Finma). The violations involved transactions totaling more than three hundred million dollars between 2002 and 2015, originating from Lebanon and routing back to Lebanon through Switzerland. Finma banned HSBC Private Bank (Suisse) from new high-risk customers until a comprehensive review is completed. The bank plans to appeal the decision.

HSBC’s Swiss private banking arm breached money-laundering rules by failing to conduct adequate checks on the high-risk accounts of two politically exposed individuals, as found by Switzerland’s Financial Market Supervisory Authority (Finma).

The violations involved transactions totaling more than three hundred million dollars between 2002 and 2015, originating from Lebanon and routing back to Lebanon through Switzerland.

Finma has banned HSBC Private Bank (Suisse) from taking on new high-risk customers until a comprehensive review of its business relationships is completed.

The bank intends to appeal Finma's decision, citing their commitment to anti-money laundering regulations.

Enforcement proceedings began in December 2021, and an audit agent will monitor the implementation of corrective measures.

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