While the data has been in the hands of tax officials around the world since May 2010, only now, after a flurry of press attention, are regulators being moved to act.
Europe’s largest bank is bracing itself for yet another wave of international regulatory probes, this time over tax evasion. A massive leak in 2010 uncovered the Swiss subsidiary’s illegal activity from 2005 to 2007, but the damaging revelations are only now causing a storm after a recent flurry of press attention.
The leak exposed the subsidiary colluding with hundreds of clients to conceal undeclared accounts. The bank even provided services to criminals and corrupt businessmen, handing out bricks of cash in various currencies.
But the kicker is that this information has been in the hands of tax officials around the world since May 2010. In this five-year period, the UK has only one measly prosecution to show for itself. Whether any action at all has been taken elsewhere is uncertain at best.
International Outcry
In the US, as with most countries, it is unclear if regulators took any action after receiving the huge cache of data, but now the US Department of Justice is considering criminal charges. Democratic senator Elizabeth Warren is calling on prosecutors to “come down hard.”
Another democratic senator and leading member of the Senate banking committee, Ohio senator Sherrod Brown, is demanding that the government explains itself. “I will be very interested to hear the government’s full explanation of actions, or lack thereof, upon learning of these allegations in 2010.”
In Belgium, where HSBC’s Swiss subsidiary is already under investigation for tax fraud, a judge is considering further action such as issuing international arrest warrants for HSBC Switzerland’s directors. Prosecution spokeswoman Ine Van Wymeersch stated that “the judge believes that it is now time for the bank to cooperate, otherwise he will be forced to issue international arrest warrants...”
In Switzerland, senior politicians are calling for regulatory investigations. Swiss socialist politician Roger Nordmann called for the opening of an inquiry. Micheline Calmy-Rey, Switzerland’s foreign minister from 2003 to 2011, said she was angry. Speaking to Swiss radio, she also asserted that opening an investigation would be “the least that could be done.”
In the UK the leak has ignited fierce political rhetoric. The Labour party put Treasury minister David Guake through a gauntlet of questions as he was forced to appear before the Commons to defend his ministry’s efforts against tax evasion.
But it is HSBC’s former chief executive and chairman Stephen Green, now Britain's trade minister, who has been receiving the brunt of the UK’s political backlash. Green was the executive chairman of HSBC from 2006 to 2010. He has so far declined to comment on the leak, but David Cameron, who made Green trade minister, has come to his defense.
The government of Denmark, meanwhile, will be seeking names of citizens who may have avoided Danish taxes via the bank. French Prime Minister Manual Valls reiterated his country’s determination in fighting tax evasion. France, for its part, has already launched an investigation.
2010 Leak
The unbelievable cache of data was leaked by Hervé Falciani, an HSBC bank IT worker. He handed over CDs to French tax investigators containing data on an estimated 130,000 clients. Straight out of an Alain Delon spy thriller, he slid them across a table of an airport cafe to the French investigators during Christmas of 2008.
He is currently under police protection in France, but in November of 2014 the Swiss federal government indicted Falciani for industrial espionage and for violating the country's bank secrecy law, punishable by a maximum of three years in prison.
Under that deal, HSBC controversially managed to avoid criminal charges and to keep its banking charter that allows it to operate in the US. It might not be so lucky this time.
Europe’s largest bank is bracing itself for yet another wave of international regulatory probes, this time over tax evasion. A massive leak in 2010 uncovered the Swiss subsidiary’s illegal activity from 2005 to 2007, but the damaging revelations are only now causing a storm after a recent flurry of press attention.
The leak exposed the subsidiary colluding with hundreds of clients to conceal undeclared accounts. The bank even provided services to criminals and corrupt businessmen, handing out bricks of cash in various currencies.
But the kicker is that this information has been in the hands of tax officials around the world since May 2010. In this five-year period, the UK has only one measly prosecution to show for itself. Whether any action at all has been taken elsewhere is uncertain at best.
International Outcry
In the US, as with most countries, it is unclear if regulators took any action after receiving the huge cache of data, but now the US Department of Justice is considering criminal charges. Democratic senator Elizabeth Warren is calling on prosecutors to “come down hard.”
Another democratic senator and leading member of the Senate banking committee, Ohio senator Sherrod Brown, is demanding that the government explains itself. “I will be very interested to hear the government’s full explanation of actions, or lack thereof, upon learning of these allegations in 2010.”
In Belgium, where HSBC’s Swiss subsidiary is already under investigation for tax fraud, a judge is considering further action such as issuing international arrest warrants for HSBC Switzerland’s directors. Prosecution spokeswoman Ine Van Wymeersch stated that “the judge believes that it is now time for the bank to cooperate, otherwise he will be forced to issue international arrest warrants...”
In Switzerland, senior politicians are calling for regulatory investigations. Swiss socialist politician Roger Nordmann called for the opening of an inquiry. Micheline Calmy-Rey, Switzerland’s foreign minister from 2003 to 2011, said she was angry. Speaking to Swiss radio, she also asserted that opening an investigation would be “the least that could be done.”
In the UK the leak has ignited fierce political rhetoric. The Labour party put Treasury minister David Guake through a gauntlet of questions as he was forced to appear before the Commons to defend his ministry’s efforts against tax evasion.
But it is HSBC’s former chief executive and chairman Stephen Green, now Britain's trade minister, who has been receiving the brunt of the UK’s political backlash. Green was the executive chairman of HSBC from 2006 to 2010. He has so far declined to comment on the leak, but David Cameron, who made Green trade minister, has come to his defense.
The government of Denmark, meanwhile, will be seeking names of citizens who may have avoided Danish taxes via the bank. French Prime Minister Manual Valls reiterated his country’s determination in fighting tax evasion. France, for its part, has already launched an investigation.
2010 Leak
The unbelievable cache of data was leaked by Hervé Falciani, an HSBC bank IT worker. He handed over CDs to French tax investigators containing data on an estimated 130,000 clients. Straight out of an Alain Delon spy thriller, he slid them across a table of an airport cafe to the French investigators during Christmas of 2008.
He is currently under police protection in France, but in November of 2014 the Swiss federal government indicted Falciani for industrial espionage and for violating the country's bank secrecy law, punishable by a maximum of three years in prison.
Under that deal, HSBC controversially managed to avoid criminal charges and to keep its banking charter that allows it to operate in the US. It might not be so lucky this time.
The Menace of Clones: Malta’s Regulator Warns against Fake "Documents and Emails"
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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