Dhaka Times Report. The US branch of HSBC (Hong Kong-Shanghai Banking Corporation) bank has provided financial services to two Bangladeshi banks accused of financing militant organizations. A US Senate sub-committee investigation report has made such allegations. HSBC authorities have already made a statement that they will apologize to the Senate by admitting their weakness. News from BBC Online.
It is known that HSBC provided financial services to two banks in Bangladesh despite the high risk of money laundering. In this case, no anti-money laundering control measures were followed. The two banks involved are Islami Bank Bangladesh Limited and Social Investment Bank (formerly Social Islami Bank).
. The report cited Bangladesh as one of the most corrupt countries in the world and said that HSBC had transactions with many institutions in Bangladesh including Mexico, Saudi Arabia, Iran, Sudan, Myanmar and North Korea without adequate controls. These institutions finance the suspected population. The report alleged that US regulators were aware of the London-based bank's weak problem-spotting process but failed to take action.
Mexican drug cartels took advantage of HSBC's lax controls to launder billions of dollars through the bank's US branches, according to the report. For seven long years (2002-2009) the profits earned from the smuggling of drugs, weapons and other illegal goods have been smuggled to different countries.
It is learned that the two banks of Bangladesh have been discussed from pages 225 to 238 of the 340-page report made by the Senate sub-committee. According to the report, as a result of various preventive measures, although HSBC stopped the US dollar bank note business with Islami Bank Bangladesh in 2010, there are two dozen affiliates of HSBC that have business with Islami Bank. As a result, Islami Bank has access to US dollars, currency transfers and payment systems. Al Rajhi Group of Saudi Arabia owns 37 percent of Islami Bank. HSBC has long since suspended dealings with the group's Al-Raji Bank following allegations that it was financing suspected terrorists.
Regarding Social Islami Bank, it has been said that the bank has helped finance suspected terrorists. And the most serious allegation regarding the bank is that two of its ownership partners - International Islamic Relief Organization and Lajnat Al Bir Al Islam - have links to terrorism.
Senator Carl Levin, chairman of the Senate subcommittee, told reporters that HSBC's US branch was used as a gateway to the US financial system. Because these banks do not have strict controls on money laundering, their US branches have received money from Mexican drug cartels and other suspicious funds. Levin said the Office of the Comptroller of the Currency had tolerated HSBC's lax control over money laundering for years. For this reason, the head of the Comptroller of Currency Office, Thomas Curry, has also been called in Tuesday's hearing.
Meanwhile, HSBC said in a statement that they will formally apologize at the hearing for their weakness. "We apologize," the statement said. I will accept that mistakes have been made. We will be accountable for our actions and fully commit to correcting our mistakes.' In a statement, HSBC claimed changes in the bank's top management were made last year to more strongly follow anti-money laundering laws.
Incidentally, Europe's largest bank is HSBC. The bank has branches in 80 countries of the world. Last year, the bank earned $1,680 million.
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