HSBC Admits it Helped Wealthy Costumers Dodge Taxes
Photo Credit: The Fiscal Times By Steve Slater and Joshua Franklin. British bank HSBC Holdings Plc admitted failings by its Swiss subsidiary in response to media reports it helped wealthy customers dodge taxes and conceal millions of dollars of assets.
“We acknowledge and are accountable for past compliance and control failures,” HSBC said late on Sunday after news outlets including French newspaper Le Monde and Britain’s The Guardian published allegations about its Swiss private bank.
The Guardian, along with other news outlets, cited documents obtained by the International Consortium of Investigative Journalists (ICIJ) via Le Monde. HSBC said that its Swiss arm had not been fully integrated into HSBC after its purchase in 1999, allowing “significantly lower” standards of compliance and due diligence to persist.
The Guardian alleged in its report that the files showed HSBC’s Swiss bank routinely allowed clients to withdraw “bricks” of cash, often in foreign currencies which were of little use in Switzerland. HSBC also marketed schemes which were likely to enable wealthy clients to avoid European taxes and colluded with some to conceal undeclared accounts from domestic tax authorities, the Guardian added. (Read more about how HSBC admits it helped wealthy costumers dodge taxes HERE)
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Claims That HSBC Aided Tax Evaders
By Chad Bray. HSBC found itself under fire again on Monday after news reports over the weekend provided more details about long-running accusations that its Swiss private banking arm helped clients hide billions of dollars in assets from international tax authorities before 2007.
In a report released on Sunday, the International Consortium of Investigative Journalists, an organization based in Washington, said that secret documents revealed that bank employees had reassured clients that HSBC would not disclose details of their accounts to tax authorities in their home countries and discussed options to avoid paying taxes on those assets. Also contributing to the report were the newspaper Le Monde in France, The Guardian in Britain, the BBC program “Panorama” and CBS News’s “60 Minutes.”
The documents were stolen from HSBC by a former employee in Switzerland in 2007 and were given to the French authorities, who in 2010 shared them with officials in Britain, Spain and the United States, among other nations. Some of those jurisdictions have used the information to seek back taxes and penalties from individuals, and the British bank has paid fines to the United States related to those disclosures. (Read more from this story HERE)
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