HomeNewsBriefHSBC Fined for Money Laundering in Argentina
BRIEF

HSBC Fined for Money Laundering in Argentina

ARGENTINA / 12 JUN 2013 BY ELYSSA PACHICO EN

Argentina's financial crimes unit will fine the local branch of London-based bank HSBC some $1 million dollars for failing to report a money laundering case, as part of an investigation into the bank's weak anti-money laundering controls. 

As Clarin reports, the financial crime unit stated that HSBC would be fined for failing to report a suspicious transaction carried out in 2007. The case involved a client who moved five million pesos (about $941,530) into a bank account. The money was then extracted from the bank account over a month. 

HSBC did not consider any of these transactions suspicious, even though the client involved had no declared assets and a monthly income that was officially reported as less than $3,000. The bank only reported the incident in 2010.

Argentina's tax authority filed criminal charges against HSBC earlier this year. At the time, the agency head accused the bank of helping businesses evade taxes and launder up to $121 million. 

Last year, the bank faced similar accusations in the US, after a Senate report found that the bank had enabled Mexican drug cartels to launder their proceeds. Organizations like the Sinaloa Cartel were reportedly able to purchase equipment such as turboprop aircraft via HSBC accounts. The bank eventually agreed to pay a $1.9 billion settlement

InSight Crime Analysis

This is not the first time that HSBC has faced fines in Argentina. The financial crimes unit fined the bank $14 million last year, for failing to report several suspicious transactions that took place inside the country in 2008. This was followed by another $6 million fine in December 2012

If Argentina's courts apply further penalties to HSBC for allowing such irregular activity, the bank will face even tougher days ahead. Additionally, if the criminal case against the bank continues to move forward in Argentina, it would stand in sharp contrast to the US, where authorities refrained from prosecuting bank officials. 

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

ARGENTINA / 12 SEP 2022

The consequences of illegal, unreported, and unregulated (IUU) fishing are immediate and enormous across Latin America and the Caribbean.

ARGENTINA / 3 FEB 2021

As workers across Latin America struggle to stay afloat amid economic strain caused by the COVID-19 pandemic, loan sharks offering…

CARIBBEAN / 29 JUN 2021

The owner of an armored transport company has been charged for his part in a transnational dirty gold network that…

About InSight Crime

WORK WITH US

Open Position: Full Stack WordPress Developer

28 NOV 2022

As Full Stack WordPress Developer You Will: Work collaboratively with other developers and designers to maintain and improve organizational standards.Demonstrate a high level of attention to detail, and implement best…

THE ORGANIZATION

Join Us This #GivingTuesday in Exposing Organized Crime

24 NOV 2022

For over twelve years, InSight Crime has contributed to the global dialogue on organized crime and corruption. Our work has provided policymakers, analysts, academics, journalists, and the general public with…

THE ORGANIZATION

Like Crime, Our Coverage Knows No Borders

18 NOV 2022

The nature of global organized crime means that while InSight Crime focuses on Latin America, we also follow criminal dynamics worldwide. InSight Crime investigator Alessandro Ford covers the connections between Latin American and European…

THE ORGANIZATION

Using Data to Expose Crime

11 NOV 2022

Co-director Jeremy McDermott made a virtual presentation at a conference hosted by the United Nations Office on Drugs and Crime (UNODC). The ‘Sixth International Conference on Governance, Crime, and Justice…

THE ORGANIZATION

InSight Crime ON AIR

4 NOV 2022

InSight Crime Co-director Steven Dudley was interviewed for the podcast The Rosenberg Case: A Tale of Murder, Corruption, and Conspiracy in Guatemala, which explores the potential involvement of then president, Álvaro Colom,…