HSBC Swiss Private Bank Investigated Over Multicountry Money Laundering Breaches

HSBC's Swiss private banking unit is under criminal investigation by Swiss and French authorities over suspected money laundering linked to two historic banking relationships, including transactions totaling over $300 million associated with a Lebanese public institution. The Swiss Financial Market Supervisory Authority found that HSBC failed to properly scrutinize these transfers, which involved funds from the Lebanese Central Bank, whose former director is accused of embezzlement. As a result, HSBC was banned from opening new accounts with politically exposed persons and required to verify existing relationships. The investigations are at an early stage but could have significant implications for the bank. These probes follow a Swiss Attorney General investigation into the alleged money laundering activities of the Lebanese officials involved. HSBC has publicly acknowledged the probes and is cooperating with authorities as the cases develop.