BERN: HSBC’s Swiss private banking arm has been raided by the prosecutors in Switzerland as the prosecutors have ordered for an investigation following allegations of money laundering against it.
The bank has also been alleged in keeping a blind eye to illegal activities of arms dealers and traders in blood diamonds and helping rich people evade taxes.
Geneva’s prosecutors said that the premises of HSBC Private Bank (Switzerland) in the city were being searched.
A statement said: “Following the recent revelations related to the HSBC Private Bank (Switzerland), the public prosecutor announces the opening of a criminal procedure against the bank … for aggravated money laundering.”
The prosecutors said that although the probe was against the bank itself, the direction it would take may be widened to include individuals “suspected of committing or participating in acts of money laundering”.
The announcement came just over a week after HSBC Switzerland found itself at the centre of a global scandal following the publication of secret documents.
The cache of files, made public in a French newspaper, claimed HSBC’s Swiss private banking arm helped clients in more than 200 countries evade taxes on accounts containing £77bn ($119bn).The files, which include the details of 30,000 accounts and the names of celebrities, were originally stolen by former HSBC IT worker Herve Falciani in 2007.
The documents were passed to the authorities in France and on to the HMRC which says it has subsequently clawed back £135m from some of the 3,600 Britons identified as potentially avoiding tax.
The International Consortium of Investigative Journalists (ICIJ), which analysed the list for the Le Monde newspaper, said accounts were held by arms dealers, dictators’ associates, diamond smugglers and other “outlaws”.
According to the files, the bank’s clients included former and current politicians from Britain, Russia, India and a number of African countries.
Those named in the files include people sanctioned by the US, such as Turkish businessman Selim Alguadis and Gennady Timchenko, an associate of Russian President Vladimir Putin who was the subject of sanctions over the Ukraine crisis.
A statement from HSBC said: “We have co-operated continuously with the Swiss authorities since first becoming aware of the data theft in 2008 and we continue to co-operate.”
Last week, the CEO of HSBC’s Swiss private bank Franco Morra said it had shut down accounts from clients who “did not meet our high standards” and that the revelations about “historical business practices” were a reminder that the old model of Swiss private banking was no longer acceptable.
