HSBC Swiss private bank faces probe over alleged money laundering
The investigations, which are in their preliminary stages, are focused on potential offenses linked to "two historical banking relationships."
The banking giant aid that the outcome of these investigations could have a significant impact on its operations, although it is currently "not practicable" to estimate the extent of the potential repercussions.
In its interim report, the bank stated: 'Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of these matters, including the timing or any possible impact on HSBC, which could be significant.'
This development follows the previous year's findings by Switzerland's financial regulator, Finma, which highlighted the bank's failure to perform sufficient checks on high-risk accounts, particularly those belonging to politically exposed persons (PEPs).
Finma's investigation revealed severe breaches of regulations concerning transactions exceeding $300M that occurred from 2002 to 2015.
Consequently, HSBC was mandated to overhaul its anti-money laundering protocols and to reassess all high-risk and politically exposed client relationships.
Additionally, the bank was instructed to refrain from acquiring any new PEP clients until the required improvements were verified as complete.
For the half-year ended 30 June 2025, HSBC's profit before tax declined by $5.7bn to $15.8bn, while revenue fell by $3.2bn, or 9%, to $34.1bn compared to the same period in 2024.
This month, HSBC Continental Europe revealed the divestment of its fund administration business, Internationale Kapitalanlagegesellschaft (INKA), to a fund managed by BlackFin Capital Partners.
"HSBC Swiss private bank faces probe over alleged money laundering " was originally created and published by Private Banker International, a GlobalData owned brand.
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