The Swiss arm of British banking giant HSBC helped wealthy clients
dodge taxes and hide millions of dollars from authorities, according to a
report by a network of investigative journalists released Sunday based
on a cache of leaked bank files.
The allegations prompted the bank to release a statement admitting it was “accountable for past compliance and control failures” at its Swiss subsidiary HSBC Private Bank.
The files, analysed by reporters in the International Consortium of Investigative Journalists (ICIJ) in collaboration with more than 140 journalists from 45 countries, showed that British banking giant HSBC provided accounts to international criminals, corrupt businessmen, politicians and celebrities.
"HSBC profited from doing business with arms dealers who channeled mortar bombs to child soldiers in Africa, bag men for Third World dictators, traffickers in blood diamonds and other international outlaws," ICIJ reported.
The leaked files were first obtained by French daily Le Monde, which then distributed them through the ICIJ to news outlets around the world, including The Guardian in the UK, Germany’s Süddeutsche Zeitung and 60 Minutes in the USA, who published their reports simultaneously on Sunday.
The Guardian alleged in its report that the files showed HSBC’s Swiss bank routinely allowed clients to withdraw “bricks” of cash, often in foreign currencies which were of little use in Switzerland, marketed schemes which were likely to enable wealthy clients to avoid European taxes and colluded to conceal undeclared accounts from domestic tax authorities.
Read more: Business - HSBC ‘helped clients dodge millions in tax’ - France 24
The allegations prompted the bank to release a statement admitting it was “accountable for past compliance and control failures” at its Swiss subsidiary HSBC Private Bank.
The files, analysed by reporters in the International Consortium of Investigative Journalists (ICIJ) in collaboration with more than 140 journalists from 45 countries, showed that British banking giant HSBC provided accounts to international criminals, corrupt businessmen, politicians and celebrities.
"HSBC profited from doing business with arms dealers who channeled mortar bombs to child soldiers in Africa, bag men for Third World dictators, traffickers in blood diamonds and other international outlaws," ICIJ reported.
The leaked files were first obtained by French daily Le Monde, which then distributed them through the ICIJ to news outlets around the world, including The Guardian in the UK, Germany’s Süddeutsche Zeitung and 60 Minutes in the USA, who published their reports simultaneously on Sunday.
The Guardian alleged in its report that the files showed HSBC’s Swiss bank routinely allowed clients to withdraw “bricks” of cash, often in foreign currencies which were of little use in Switzerland, marketed schemes which were likely to enable wealthy clients to avoid European taxes and colluded to conceal undeclared accounts from domestic tax authorities.
Read more: Business - HSBC ‘helped clients dodge millions in tax’ - France 24
