LONDON: The Bank of England may look into allegations that Europe’s biggest bank HSBC helped clients to avoid paying tax, a top Bank of England official said.
Jon Cunliffe, the Bank of England’s deputy governor for financial stability said “The allegations around HSBC raise serious issues around HSBC’s conduct”.
He further said the leadership of a large group, to be able to ensure that there is a culture and the operations within that group to manage those sorts of risks. This is certainly something that could be of relevance to us.
HSBC has admitted failings in compliance and controls in its Swiss private bank after media reports alleged it helped wealthy customers conceal millions of dollars of assets up to 2007.
The Bank of England’s Prudential Regulation Authority authorises and supervises HSBC for safety and soundness, making sure it holds enough capital.
Andrew Bailey, PRA Chief Executive has raised concerns that the mounting level of fines and other sanctions for misconduct could potentially destabilise banks.
Another regulator, the Financial Conduct Authority (FCA) is responsible for making sure bank employees behave properly.
The FCA, which has powers to fine banks and bar employees, said it would not comment on whether it is investigating any individual bank.
Martin Wheatley, FCA Chief Executive surprised British lawmakers when he said he only became aware of the specific allegations against HSBC when they emerged in the media last weekend.
