John Christensen ■ HSBC, money-laundering and Swiss regulatory deterrence
Number-crunching, à la Private Eye: the case of HSBC and its Swiss fine for “organisational deficiencies” in relation to money-laundering.
- $42.8 million Fine imposed on HSBC by Geneva authorities for “organisational deficiencies” related to money-laundering uncovered in #SwissLeaks
- More than $100 billion Amount held in accounts exposed in #SwissLeaks
- 0.04% Fine as a percentage of (revealed) assets under management
- 0.00% Likely deterrent effect
Not all the assets under management were laundered, of course. Far from it, we must hope. But the “organisational deficiencies” – including reassuring clients that no information would reach their home authorities, or using offshore accounts to circumvent disclosure requirements – represent risks that applied to the whole operation.
To put it another way, the fine is about a fifth of the £135 million in tax that HMRC recovered in the UK alone.
Even the prosecutor imposing the fine was embarrassed, and “launched a stinging attack” on the Swiss law that apparently prevented anything within yodeling distance of being a deterrent.
Cross-posted from Uncounted
Educação + impostos = vidas transformadas: the Tax Justice Network Portuguese podcast
Ordinary people shortchanged by Covid recovery measures in Global South
To protect children’s right to education, governments must fight tax abuse
Tax and racial justice: the Tax Justice Network podcast, the Taxcast
Affaires Glencore et Sinosteel au Cameroun: Cas pratiques du besoin de plus de transparence sur les contrats extractifs en Afrique
Glencore and Sinosteel cases in Cameroon: Practical cases of the need for more transparency on extractive contracts in Africa
Switzerland – Submission to the UN Committee for the Convention on the Elimination of All Forms of Discrimination Against Women
20 September 2022