Reuters Berne
WHILE the scandal surrounding HSBC’s private Swiss bank was “unsavoury” the Geneva-based lender had been working hard to clean itself up, Switzerland’s bank regulator said yesterday.
Britain’s HSBC has admitted past failings in compliance and control at its Swiss bank following allegations it may have enabled clients to conceal millions of dollars of assets.
It faces investigation by US and French authorities, as well as an inquiry by UK legislators.
“The matter is unsavoury and it paints a picture of Switzerland that we don’t like to see: the Switzerland of 10 or more years ago,” Mark Branson, the head of Swiss financial regulator FINMA, said.
“No bank in Switzerland has done as much during this time as HSBC has. They have decided to exit certain countries and client segments, and their number of clients has shrunk by about 70 percent,” Branson said.
The scandal was sparked by data from whistleblower Herve Falciani, a former information technology employee at HSBC. The allegations have put FINMA on the defensive against legislators inquiring about oversight of the bank.
The regulator has made some of its past enforcement actions against the Swiss division of HSBC public recently.
They included investigations for aiding money laundering and for dealings with politically prominent clients.
Branson said the watchdog had imposed a three-year blanket ban on HSBC acquiring so-called politically exposed persons. HSBC was not available for comment.