Financial Crime World

HSBC Faces New Money Laundering Allegations in Argentina: Fake Receipts and $77 Million

International Banking Giant HSBC Under Fire in Argentina

HSBC, a prominent global banking institution, is under investigation for allegedly engaging in money laundering and tax evasion schemes in Argentina. The country’s tax authority has confirmed the laundering of approximately $77 million (392 million pesos or £50 million).

Fake Receipts and Fraudulent Transactions

The Argentine tax agency filed criminal charges against HSBC on Monday, accusing the bank of using “fake receipts” to facilitate these illegal activities. The transactions in question amount to 392 million pesos over the past six months.

  • Tax Evasion and Money Laundering: Ricardo Echegaray, head of the Argentine tax agency, has stated that these transactions involve tax evasion and money laundering.
  • Additional Investigations: HSBC is also under investigation for helping clients evade taxes on an additional 224 million pesos.

Penalties and recovering ill-gotten gains

Echegaray expressed hope that the courts would “apply an appropriate penalty” once the case is fully investigated. He added that the ill-gotten gains would be recovered.

Previous US Fine for Money Laundering

HSBC, which was hit with a record-breaking $1.9 billion fine by US authorities for money laundering in 2020, acknowledged the new allegations. In a statement, Lyssette Bravo, a spokesperson for HSBC, confirmed the investigation and shared the bank’s commitment to cooperation.

“We are committed to working cooperatively with the authorities in Argentina to ensure a thorough review and appropriate resolution of the matter,” Bravo said.

Efforts to Prevent Money Laundering

Since the US fine in 2020, HSBC has taken steps to improve its systems to prevent money laundering. The bank has spent $290 million and appointed former US official Bob Werner as its new Head of Financial Crime Compliance.

  • Former US Official as Head of Financial Crime Compliance: Werner was previously the head of the US Treasury’s Office of Foreign Assets Control, which enforces US sanctions on various countries, including Iran.

HSBC’s commitment to cooperation and its recent investments in preventing money laundering and reinforcing its anti-money laundering and sanctions compliance measures remain to be seen in the Argentine case.