HONG KONG: HSBC is to face a French criminal probe over tax dealings at its Swiss private banking arm, the British banking giant said here the other day, adding that “bail” of one billion euros (HK$8.3 billion) has been imposed.
HSBC said it “has been placed under formal criminal investigation by the French magistrates in connection with the conduct of HSBC’s Swiss Private Bank in 2006 and 2007 for alleged tax-related offenses” in a case which featured in the so-called “SwissLeaks” controversy.
The SwissLeaks affair erupted in February following investigations by international newspapers led by Le Monde of France using stolen documents supplied by the bank’s former IT employee Herve Falciani.
That data indicated the bank helped more than 120,000 clients to hide 180.6 billion euros from tax authorities.
The bank said the decision by French magistrates “is without legal basis” while the bail “is unwarranted and excessive.”
HSBC said it would appeal the decision by the French magistrates and “defend itself vigorously in any future proceedings.”
According to the investigations into Falciani’s whistle-blowing data, HSBC allegedly arranged for more than five billion euros to be tucked away in trusts, shell companies and offshore accounts for around 9,000 French clients.
