|HSBC Fined Huge Funds over Swiss Bank|
HSBC has settled its money laundering case with Swiss authorities by agreeing to pay 40m Swiss francs (£27.8m)
HSBC has been at the centre of a tax avoidance and money laundering scandal this year after a whistleblower revealed its Swiss private banking arm had been consciously helping UK customers, along with those from a number of other countries, avoid domestic taxes.
The documents, first leaked to French police by an IT engineer in 2007, and obtained in a joint investigation by several media outlets in February, revealed the lengths it helped named clients avoid tax.
The investigation into “suspected aggravated money laundering” is now closed after HSBC agreed to the largest amount of compensation ever paid in Geneva.
There was widespread anger in the UK when it was revealed information supplied to HMRC in 2010 – from which the Revenue identified 3,600 UK taxpayers who may have sought to evade tax - led to only one prosecution.
HMRC now is facing a legal challenge over its decision to let hundreds of suspected tax evaders make use of an amnesty rather than face prosecution.
In March HSBC announced it was ending its audit contract with KPMG earlier than expected and signed with Big Four rival PwC.
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Published on our website on June.8, 2015