PARIS: French prosecutors have expanded their investigations into the activities of HSBC’s Swiss subsidiary to include its global holding company, the bank has disclosed.
Authorities completed an investigation into HSBC Suisse for alleged tax-related offences earlier this year, turning over a file to prosecutors to make a formal decision.
The bank said that prosecutors were now investigating HSBC’s global holdings company and had set bail at €1bn (£724m). In the previous investigation, bail was set at €50m.
In a short statement announcing the investigation on its corporate website, HSBC says it will vigorously contest the proceedings.
HSBC Holdings plc believes the French magistrates’ decision is without legal basis and the bail is unwarranted and excessive,” it says. “It intends to appeal and will defend itself vigorously in any future proceedings.”
A spokesman for the French financial prosecutor in Paris confirmed the move had been taken to place HSBC Holdings PLC under formal investigation, which means the inquiry could now continue for months.
The financial prosecutor did not provide details of the exact charges faced by HSBC nor confirm any details of whether HSBC refused a deal to enter a guilty plea. The €1bn bail was imposed as part of standard procedure “to ensure payment of any damages and interests that might be decided by any future trial”.
The expanded investigation continues to centre on activities in HSBC’s Swiss subsidiary in 2006 and 2007, which were revealed last month in the HSBC files project, led by the International Consortium of Investigative Journalists and published by the Guardian, Le Monde, the BBC and dozens of other outlets.
