Friday, October 30, 2020

Financial giants, HSBC accused of supporting fraudsters in Ponzi scheme

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Leaked secret files in the Britain show that HSBC allowed fraudsters to transfer millions of dollars around the world even after it had learnt of their scam.

Britain’s biggest bank moved the money through its US business to HSBC accounts in Hong Kong in 2013 and 2014.

Its role in the $80m (£62m) fraud is detailed in a leak of documents that have been called the FinCEN Files.

HSBC says it has always met its legal duties on reporting such activity.

The files show that the investment scam, known as Ponzi scheme, started soon after the bank was fined $1.9bn (£1.4bn) in the US over money laundering.

It had promised to clamp down on these sorts of practices.