Leaked HSBC List Shows Who Was Banking on Swiss Secrecy
The private-banking unit of HSBC Holdings Plc made significant profits for years handling secret accounts for an array of criminals, from drug cartels and arms dealers to tax evaders and fugitive diamond merchants, according to a report released Sunday by an international news organization.
HSBC is among a handful of banks to face criminal prosecution in recent years for its role in a Swiss banking system that allowed depositors to conceal their identities, and in many cases dodge taxes or launder ill-gotten cash. The report, prepared by the Washington-based International Consortium of Investigative Journalists, revealed for the first time the massive sweep of HSBC’s private-banking arm as of 2007, when it controlled $100 billion in assets and served a swath of wealthy depositors from the elite to the illicit.
HSBC shares fell 2 percent to 608.20 pence at 1:09 p.m. in London, giving the bank a market value of 117 billion pounds ($178 billion).
More: Leaked HSBC List Shows Who Was Banking on Swiss Secrecy - Bloomberg Business