HSBC investigates claims of criminal account holders

// News | General | HSBC investigates claims of criminal account holders
Email to a friend Plain text Print version // Font size: Decrease font Enlarge font

HSBC bank says it is looking into allegations that criminals have used offshore accounts at its Jersey operation for money laundering.

The bank issued a statement after the Daily Telegraph newspaper said it was at the centre of a major investigation by HM Revenue and Customs .

HSBC said it was investigating “an alleged loss of certain client data in Jersey as a matter of urgency”.

HMRC said it had “received the data and we are studying it”.

“We receive information from a very wide range of sources which we use to ensure the tax rules are being respected,” the tax authority said.

In a statement, HSBC said, “Clamping down on those who try to cheat the system through evading taxes and over-claiming benefits is a top priority for us, and we value the information we receive from the public and business community.”

Owning an offshore bank account is not illegal. But it is illegal to hide the interest which has accrued on the sums held, and to avoid paying tax on that interest to HMRC.

Geoff Cook, of the trade organisation Jersey Finance, said, “This is a serious matter and we note HSBC’s immediate commitment to co-operating with any investigations carried out by the relevant authorities and welcome the clear position taken by the Jersey Financial Services Commission, that any failure to adhere to Jersey’s clear standards will be robustly investigated and acted upon.”

According to the Daily Telegraph, the tax authorities have obtained details of “every British client of HSBC in Jersey” based on information provided by a whistle-blower .

“These cases will be very complex, difficult and ultimately time consuming to unravel”

It is reported that the 4,000 offshore account holders include a well-known drug dealer living in Central America, bankers who face allegations of fraud and a man once dubbed London’s “number two crook”.

BBC business editor Robert Peston said, “It is really quite difficult to tell from this disclosure whether or not this is an example of HSBC yet again having, shall we say, laxer or weaker controls over who it takes money from.”

“The American authorities do think HSBC was, for too many years, too prone, or in a sense, too easily duped by terrorists and criminals who wanted to launder money. We just don’t have enough information whether or not this is an another example of those weak controls.”

Our business editor said he had been told by HSBC that this appeared to be a case of “whistle-blowers handing over bunches of bank names for whatever reasons”.

He added, “They don’t think they will emerge from this investigation to be shown to be particularly lax in their controls.”

Earlier this year, a US Senate report alleged that staff at HSBC’s global operations had laundered billions of dollars for drug cartels and terrorists in a “pervasively polluted” culture that persisted for years.

The report detailed how HSBC’s subsidiaries cleared suspicious travellers’ cheques worth billions, and allowed Mexican drug lords to buy planes with money laundered through Cayman Islands accounts

David Bagley, HSBC’s head of compliance since 2002, resigned from his post when he appeared before the US Senate committee in July.

In theory, HMRC should know about most of the HSBC accounts already.

In 2006, it established a crucial legal breakthrough which meant, for the first time, that it could demand that banks reveal the identities of UK taxpayers who hold accounts offshore.

Since then, the Revenue has been sending demands to hundreds of UK and foreign banks, asking them to do just that.

This has already brought in several hundred million pounds in taxes, interest and penalties, from people who confessed that they had been hiding money abroad.

HMRC has received the latest list of HSBC accounts from the whistle-blower only very recently.

But even if it has come with names and addresses attached, it will not necessarily be an easy matter to identify the people who own the accounts.

Ronnie Ludwig, a tax partner at the accountants Saffery Champness, said some accounts were likely to be in the names of nominee companies and trusts, which hide the identity of the beneficial owner.

Some accounts could also have a trigger clause, he explained, which means the money is moved swiftly to accounts in other offshore tax havens, such as the British Virgin Islands or the Cayman Island, if HMRC intensifies its scrutiny.

 Ludwig told the BBC that even with an accurate list in its possession, HMRC would still have quite a task on its hands to sort through each account.

“HMRC is facing an uphill struggle in terms of its resources, because these cases will be very complex, difficult and ultimately time-consuming to unravel,” he said.

Tagged : No tags for this article

Headlines Newsview all

Pastor Chris Oyakhilome's Wife Files For Divorce On The Grounds Of Adultery!

Nothing hides forever. May God forgive me, but I have said it here before that Pastor should come open and tell us if marrying More ... Full story

National Universities Commission Publishes List Of Illegal Universities In Nigeria

The National Universities Commission (NUC) wishes to announce to the general public, especially parents and prospective undergraduates, that the under-listed “Degree Mills” have not been ... Full story

Nigerian immigrants seeking asylum under harsh conditions in Pretoria, South Africa - Video Video

Here are some photos and a video shot that captures the plight of Nigerian immigrants seeking asylum under harsh conditions in Pretoria, South Africa. According to ... Full story

Nollywood Actress Kate Henshaw Going Into Politics - Video

Kate Henshaw has told Reporters that she will be taking a break from acting for now to pursue her political career. She also says she ... Full story

Nigeria’s Health Minister Onyebuchi Chukwu Confirms Ebola Death In Port Harcourt

Nigeria has confirmed its first Ebola death outside Lagos – a doctor in the oil hub of Port Harcourt. Nigeria’s Health minister Onyebuchi Chukwu said the ...

Charly Boy Gives Lessons On Marriage

Son of late Justice Chukwudifu Oputa, Charles, better addressed as Charly Boy, says marriage is not all about finding someone who matches up with on ... Full story

Samuel Sadela, Nigeria’s Oldest Pastor, Dies At Age 114

The Founder and President of the Gospel Apostolic Church, Pa Samuel Sadela, has passed on. He was aged 114. Although a senior pastor in the church reportedly ...

Nigerian soldiers that fled to Cameroon following a fierce battle with Boko Haram militants, return

Some of the Nigerian soldiers that fled to Cameroon following a fierce battle with Boko Haram militants in locations around Borno and Adamawa states have ...

Pastor Chris Oyakhilome Says Many Pastors Will Go To Hell

Founder and head pastor of Believers Love World, popularly known as Christ Embassy, Chris Oyakhilome left members of his church shocked with his revelation while ... Full story

Ebola scare: Passengers quarantined at Scottish Airport after 10-year-old Nigerian passenger became ill

 Shocked airline passengers were recovering following a terrifying ebola scare which saw them quarantined for 90 minutes at a Scottish Airport yesterday, Mailonline reported.More than ... Full story

Fulani clash with Eggon youths in Nasarawa State leaves 17 dead

No fewer than 17 people were killed on Sunday night during a clash between suspected Eggon youths and their Fulani counterparts in  Alingani Fadaman Bauna, ... Full story

Comment on: HSBC investigates claims of criminal account holders

Rate this article

0

Featured author

Paula Obiewkwe

Breaking News

Chris Oyakhilome's Wife, Anita Files For Divorce On Adultery Grounds

News reaching Nigeriafilms.com from The Cable has it that the dissolution of the marriage between Christ Embassy Church founder, Pastor Chris Oyakhilome, and his wife, ...

"You Do Not Have To Have University Education To Be Able To Make It" Folorunsho Alakija

No one would immediately believe that Mrs Folorunsho Alakija one of Africa's richest women and chairman of Famfa Oil never had a University education.The mother ...

Davido Lied! He Can’t Afford The Acquisition And Maintenance Of A Private Jet, See Why- Pas Chikero

Davido Lied! He Can’t Afford The Acquisition And Maintenance Of A Private Jet, See Why- Pas Chikero Nigerian Entertainers love to create hype with things ...

"The Devil Is Taking It Personal To Attack Marriages" --Mercy Aigbe

Nollywood actress Mercy Aigbe is giving advice to ladies who are not yet married, she said there is no need to rush into marriage and ...

You Cannot Return Me To My Parents- Tiwa Savage Tells Husband

With the whole break up saga that goes around celebrity marriages these days, singer, Tiwa Savage-Balogun has intended to stay married no matter what.The singer ...

MISTRESS TEARS MOVIE DIRECTOR’S HOME APART

Another scandal is currently raging in Nollywood. And this time, it involves an elderly movie director who cannot put his two legs in one place. ...

FASHION POLICE REPORT: I Strongly Disapprove of This Look Tiwa

Tiwa Savage in a denim mini dress from the Agbani Darego collection Tiwa Savage (popularly known as the first lady of Mavin Records), stepped out in ...

I Don’t Show off My Wealth Because I Need My Fans Love……….Rapper, Reminisce

Yoruba rapper, Remilekun Shafaru popularly known as Reminisce, says he almost quit music four months before his fortune improved.According to the indigenous rapper, he actually ...

FG pays N25bn GENCOs’ gas debts to boost electricity supply

President Goodluck Jonathan, yesterday, said the Federal Government has paid off power generation companies,’ GENCOs, N25 billion debts owed gas companies for gas supplies in ...

BREAKING NEWS: Nasir El-Rufai Mocks Boko Haram Revealed Sponsors: SHERIFF AND IHEJIRIKA

In a recent interview with Arise TV, Australian hostage negotiator, Stephen Davis, revealed some Nigerians whom he claimed were allegedly behind the sponsoring of the ...