BERN: HSBC has been placed under formal investigation by a French court and ordered to pay CHF1.04 billion (€1 billion) in bail in relation to alleged tax evasion abuses by its Swiss private banking branch.
The latest announcement adds to the huge pressure mounted on HSBC over the alleged behaviour of its Geneva-based unit which came to light when former employee Hervé Falciani leaked sensitive documents to the French authorities.
The British controlled banking group has endured intense scrutiny in Britain for many months following the SwissLeaks media reports that detailed transactions between the private bank and clients. The bank has issued a formal apology for its past actions and said it has reformed.
However, the bank called the French €1 billion bail “without legal basis and…unwarranted and excessive”. It said it would appeal the decision to set such a high bail.
Last year, Swiss bank UBS failed in its bid to cancel a €1.1 billion bail payment set by a French court examining the Swiss bank on similar charges.
