Mexican Cartels and Arab banks are linked to terrorist groups in the center of a broad investigation into money laundering and suspicious flow the U.S. Senate announced yesterday, which would be involved British Executives of financial firm HSBC Holdings.
The 400-page report resulting from the review of 1.4 million documents, said that a culture “contaminated” at HSBC Holdings allowing the bank to act as clients receiving financial dark backgrounds from places like Mexico, Iran, the Cayman Islands Saudi Arabia and Syria have also worked on transactions with countries facing international sanctions as North Korea, Cuba and Iran.
Executives at HSBC Holdings incurred in risky behavior in pursuit of profit, explained The Wall Street Journal. The New York newspaper quoted a Justice Department investigation of the U.S. government which asks whether these officials were complicit in hiding large amounts of money from drug cartels for the purpose of washing.
For Mexico, according to testimony from people familiar with the research cited by the WSJ, photographs taken by officers show “holds money in cash,” what prosecutors said is indicative of the high volume of transactions that had “light bulbs alarm.”
HSBC executives being investigated
They are designated as accomplices to hide large amounts of money from drug cartels in Mexico
British bank HSBC Holdings has been used by Mexican drug trafficking that seeks to introduce cash into the United States, according to a Senate report disclosed that country last night.
This information coincides with a Justice Department investigation that the U.S. government is investigating whether bank executives were complicit in hiding large amounts of money from drug cartels in Mexico for the purpose of washing, as well as having financial ties detected with international terrorist groups, according to the newspaper announced the Wall Street Journal .
The Justice Department made a probe to see if “bank officials were complicit in the drug cartels by allowing them to hide flows of large amounts of cash between the U.S. and Mexico,” the newspaper said.
According to testimony from people close to the investigation, show photographs taken by agents’ warehouses of cash, “which prosecutors said is indicative of the high volume of transactions that had” red flags start given the size of the operation HSBC in Mexico. “
As part of the work carried out by the Department of Justice, bank officials acknowledged flaws in its legitimate business of transferring cash from its customers, a kind of operation that no longer do.
The paper focused on the Department of Justice and HSBC have accelerated their search for an agreement to resolve the criminal investigation, which could be reached during the coming weeks.
A meeting with bank executives is scheduled for the U.S. Senate to discuss topics related to criminal investigation, which focused on “lax compliance with regulations” in its international units.
This failure may have been used for a “potential terrorist financing and drug cartels to launder illicit profits,” the note signed by Evan Perez.
In a message sent to employees in recent days, the executive director of HSBC, Stuart Gulliver, acknowledged mistakes. “We failed to detect and control unacceptable” practices, he said.
The United States government had warned banks need to closely monitor their business of large amounts of cash into Mexico, particularly those relating to currency exchange houses.
Also added to the remarks of U.S. officials at Bank of America for allegedly laundering money for Mexican criminal organization Los Zetas , released last week by The Wall Street Journal .
Relation to terrorism
HSBC Holdings was also reported by customers receiving funding from dark backgrounds places like Mexico, Iran, Cayman Islands, Saudi Arabia and Syria.
For example, detailing the alleged vínculoscon a bank in Saudi Arabia related to terrorist organizations and act as financiers of Iranians who tried to evade EU sanctions, according to a report by the U.S. Senate, which published The New York Times.
“The culture at HSBC was contaminated for a long time,” said Sen. Carl Levin, chairman of the Permanent Subcommittee on Investigations United States Senate, a congressional watchdog.
The report said that a successful executive of HSBC suggested resume negotiations with the bank Al Rajhi’s whose founder has been for a long time benefactor of the terrorist group Al-Qaeda. The New York newspaper noted that, ultimately, the American part of HSBC supplied with billions of dollars to the Saudi bank.
The newspaper outlined allegations of HSBC to cooperate in transactions with countries facing sanctions as North Korea, Cuba and Iran, and in some cases circumvent the laws in the pursuit of profit.
In Iran’s case found that the bank provided 25 000 questionable payments between 2001 and 2007 and that “in some cases executives of HSBC Holdings advised Iranian financial institutions on how to evade filters U.S. regulators.”
Accept mistakes and tighten security features
HSBC executives will appear before the U.S. Senate to clarify its position regarding the process followed in that country for alleged money laundering and financing of terrorism attributed to the bank.
The financial firm said in a statement: “We will recognize that in the past, our standards were not as expected by regulators and customers.”
With this, came forward to what will be their response to the Permanent Subcommittee on Investigations of the Senate of the United States.
“We apologize, we will recognize these errors, accounting of our actions and commit ourselves completely to fix what went wrong.
“We learned a lot from working with the Subcommittee and U.S. regulatory authorities in this case, and we recognize that our controls could and should be stronger and more effective to identify and confront unacceptable behavior,” he added.
HSBC will undertake concrete steps to strengthen internal controls, he said.
- HSBC’s lax control led to money laundering: report (thehindu.com)
- Drug money laundered through HSBC, U.S. Senate probe says (cbc.ca)
- Senate says cartel money laundered at HSBC (cbsnews.com)