Hsbc Final Accounting
Páginas: 9 (2204 palabras)
Publicado: 8 de marzo de 2013
Index
Define the problem. . . . . . . . . 2
Top 4 Surprises. . . . . . . . . 3
What should be done? . . . . . . 4
Possible Plans of actions. . . . . . 5
Which is the best? . . . . . . . 5
Effects of Plan of action. . . . . . 6, 7
Conclusion. . . . . . . . . 8, 9
Bibliography. . . . . .10
HSBC money laundering scandal draws in trade minister
The problem:
The company HSBC has problems in managing the information of their banking systems.
Apparently Mr. Lord Green is accused by mismanagement of the accounts, and money laundering by the bank while he was a director of HSBC.
The report considers that scarce bank controlmechanisms and the lack of action by regulators allowed Mexican drug cartels launder billions of dollars through its U.S. operations.
During the hearing, the head of British bank HSBC control, David Bagley, acknowledged that there have been failures in the control systems and announced his resignation.
The report said that between 2007 and 2008 the Mexican subsidiary HBMX introduced 7,000 milliondollars in cash in the system through HSBC in U.S. without taking account of its origin and character of the transactions.
"This is a reminder of the huge difficulties our banking system got into in the run-up to the banking crisis, the culture that existed then that led to all sorts of appalling and irresponsible behaviour from which this country is still suffering under the weight of theconsequences from those mistakes”
The Top 4 Surprises…
1) There's the scale of it. HSBC transferred $19bn (£12bn) for Iran, $7bn in physical cash for Mexico.
2) It was universal, "As Barclays is to Libor price fixing, HSBC is to money laundering” meaning that HSBC is just the first to be found out for something that everyone was doing. For at least four years, federalinvestigations have been examining more than a dozen major global banks. Credit Suisse, Lloyds and Barclays have already settled, paying fines totaling $1.2bn for failures in money laundering controls. In a separate case, Wachovia, a large US bank later acquired by Wells Fargo, paid fines for having transferred, over the course of a decade, $370bn between the US and Latin America, most of it in cash,without flagging a single suspicious transaction to the authorities. Other major cases resulting in settlements and fines involved, American Express and Riggs Bank.
3) No customer was beyond the pale. Several banks aided Iran not just in evading general sanctions, but in concealing payments directly involving its nuclear and ballistic missile programmers. Evidence suggests that HSBC and other globalbanks also performed similar services for various combinations of Hamas, North Korea, Sudan, Gaddafi's Libya, Hezbollah, African warlords, ex-dictators, drug cartels, and banks linked to al-Qaida, among other distinguished clients. The amounts processed totaled hundreds of billions of dollars.
Riggs Bank provided accounts and money laundering for the highly corrupt dictator of Equatorial Guinea,the secret cash accumulated by Augusto Pinochet and Saudi Arabian diplomats. Most of the banks also allowed huge transfers of physical cash and travelers’ checks used by Latin American drug cartels and Russian organized criminals. HSBC's Japanese subsidiary unquestioningly processed $290m in travelers’ checks for visiting Russians who said they were in the used-car business.
4) How completelynaked it was. Credit Suisse effectively created a special handbook on money laundering, which it distributed to clients, entitled How to Transfer US Dollar Payments. When a former Scotland Yard officer working in Wachovia's compliance unit noticed supposedly independent transfers using sequentially numbered travelers’ checks, totaling huge sums and originating from Mexican border areas, he was told...
Define the problem. . . . . . . . . 2
Top 4 Surprises. . . . . . . . . 3
What should be done? . . . . . . 4
Possible Plans of actions. . . . . . 5
Which is the best? . . . . . . . 5
Effects of Plan of action. . . . . . 6, 7
Conclusion. . . . . . . . . 8, 9
Bibliography. . . . . .10
HSBC money laundering scandal draws in trade minister
The problem:
The company HSBC has problems in managing the information of their banking systems.
Apparently Mr. Lord Green is accused by mismanagement of the accounts, and money laundering by the bank while he was a director of HSBC.
The report considers that scarce bank controlmechanisms and the lack of action by regulators allowed Mexican drug cartels launder billions of dollars through its U.S. operations.
During the hearing, the head of British bank HSBC control, David Bagley, acknowledged that there have been failures in the control systems and announced his resignation.
The report said that between 2007 and 2008 the Mexican subsidiary HBMX introduced 7,000 milliondollars in cash in the system through HSBC in U.S. without taking account of its origin and character of the transactions.
"This is a reminder of the huge difficulties our banking system got into in the run-up to the banking crisis, the culture that existed then that led to all sorts of appalling and irresponsible behaviour from which this country is still suffering under the weight of theconsequences from those mistakes”
The Top 4 Surprises…
1) There's the scale of it. HSBC transferred $19bn (£12bn) for Iran, $7bn in physical cash for Mexico.
2) It was universal, "As Barclays is to Libor price fixing, HSBC is to money laundering” meaning that HSBC is just the first to be found out for something that everyone was doing. For at least four years, federalinvestigations have been examining more than a dozen major global banks. Credit Suisse, Lloyds and Barclays have already settled, paying fines totaling $1.2bn for failures in money laundering controls. In a separate case, Wachovia, a large US bank later acquired by Wells Fargo, paid fines for having transferred, over the course of a decade, $370bn between the US and Latin America, most of it in cash,without flagging a single suspicious transaction to the authorities. Other major cases resulting in settlements and fines involved, American Express and Riggs Bank.
3) No customer was beyond the pale. Several banks aided Iran not just in evading general sanctions, but in concealing payments directly involving its nuclear and ballistic missile programmers. Evidence suggests that HSBC and other globalbanks also performed similar services for various combinations of Hamas, North Korea, Sudan, Gaddafi's Libya, Hezbollah, African warlords, ex-dictators, drug cartels, and banks linked to al-Qaida, among other distinguished clients. The amounts processed totaled hundreds of billions of dollars.
Riggs Bank provided accounts and money laundering for the highly corrupt dictator of Equatorial Guinea,the secret cash accumulated by Augusto Pinochet and Saudi Arabian diplomats. Most of the banks also allowed huge transfers of physical cash and travelers’ checks used by Latin American drug cartels and Russian organized criminals. HSBC's Japanese subsidiary unquestioningly processed $290m in travelers’ checks for visiting Russians who said they were in the used-car business.
4) How completelynaked it was. Credit Suisse effectively created a special handbook on money laundering, which it distributed to clients, entitled How to Transfer US Dollar Payments. When a former Scotland Yard officer working in Wachovia's compliance unit noticed supposedly independent transfers using sequentially numbered travelers’ checks, totaling huge sums and originating from Mexican border areas, he was told...
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