9 November 2012 Last updated at 04:23 ET
HSBC bank says it is looking into allegations that criminals have used offshore accounts at its Jersey operation for money laundering.
The bank issued a statement after the Daily Telegraph newspaper said it was at the centre of a major investigation by HM Revenue and Customs.
HSBC said it was investigating “an alleged loss of certain client data in Jersey as a matter of urgency”.
But it added it had not been contacted by HMRC or any other authority.
According to the Daily Telegraph, the tax authorities have obtained details of “every British client of HSBC in Jersey” based on information provided by a whistle-blower this week.
It is reported that the 4,000 offshore account holders include a well-known drug dealer living in Central America, bankers who face allegations of fraud and a man once dubbed London’s “number two crook”.
Controls issue
BBC business editor Robert Peston says: “It is really quite difficult to tell from this disclosure whether or not this is an example of HSBC yet again having, shall we say, laxer or weaker controls over who it takes money from.
“The American authorities do think HSBC was for too many years too prone, or in a sense, too easily duped by terrorists and criminals who wanted to launder money. We just don’t have enough information whether or not this is an another example of those weak controls.”
Our business editor says he has been told by HSBC that this appears to be a case of “whistle-blowers handing over bunches of bank names for whatever reasons”.
He adds: “They don’t think they will emerge from this investigation to be shown to be particularly lax in their controls.”
BBC News – Business
HSBC to probe ‘criminal’ accounts
This article
HSBC to probe ‘criminal’ accounts
can be opened in url
http://stylenewster.blogspot.com/2012/11/hsbc-to-probe-criminal-accounts.html
HSBC to probe ‘criminal’ accounts
