HSBC hit with £27.8m Geneva money laundering fine
Geneva authorities have shuttered an investigation against HSBC for alleged “organisational deficiencies” allowing the bank to launder money through its Swiss subsidiary.
To settle accounts with the Swiss government, HSBC had to dish out a fine of £27.8m, the largest ever issued by Geneva.
Geneva chief prosecutor Olivier Jornot was quoted by the Guardian as saying: “This matter shows the weakness of Swiss law in the matter of entry of criminal funds into the financial system,” with Jornot threatening the bank not to breach rules again.
“This is an excuse which will only apply once.”
The investigation came to a head following a raid on HSBC’s Geneva offices 18 February this year.
The bank issued a statement: “The investigation conducted by the public prosecutor of the canton of Geneva into HSBC Private Bank (Suisse) SA (‘the Bank’) has been formally closed today.
"The investigation found that neither the bank nor its employees are suspected of any current criminal offences.
“The Geneva prosecutor acknowledges the progress the bank has made in recent years, including the improvements in its compliance function, internal processes and technology.”
This comes after the bank threatened to relocate its headquarters from the UK just last month.