FinCEN report: HSBC shares drop to lowest level since 1995

HSBC, Standard Chartered's reportedly moved large sums of illicit cash for 2 decades with no idea of money's origins: report

Banks are required to file an SAR whenever handling funds that cause grounds for suspicion of criminal activity. FinCEN said in its September 1 announcement that it referred the matter to the US Department of Justice and the Treasury Department's inspector general.Last week, FinCEN announced it was considering changes to enhance the effectiveness of its anti-money-laundering programme.Deutsche Bank had the largest amount of transactions flagged in suspicious activity reports reviewed by ICIJ, with transactions totalling more than US$1.3 trillion.

"Adding to HSBC's woes have been political tensions between Hong Kong and the U.S., the bank being less efficient at generating profits than before the global financial crisis, and a prolonged period of underperformance with its United States operations".

"It also brings out the point that managing financial crime risk goes beyond making SARs", Bogardi said.

Of the four prominent banks alleged in media reports, HSBC is the largest one in terms of market cap with a value of £58.22 billion. The were filing so many SARs that enforcement agencies could not keep up.

JPMorgan and Bank of New York Mellon, which were also in the top five banks mentioned most frequently in the SARs, fell more than 3% each during trading in New York. Standard Chartered fell 5% in London trading, while Barclays and Deutsche Bank shares declined more than 8% as investors digested the report and also anxious about tighter virus restrictions.

Several analysts, however, played down the scale of problems.

The SARs showed that banks often moved funds for companies that were registered in offshore havens, such as the British Virgin Islands, and did not know the ultimate owner of the account, the report said.

Who's named? nearly 90 financial institutions appear in the documents, including numerous world's biggest banks.

In a statement to Reuters on Sunday, HSBC said "all of the information provided by the ICIJ is historical".

BNY Mellon said it fully complied with all "all applicable laws and regulations".

JP Morgan processed more than $50 million in payments for Manafort over a decade that were flagged as suspicious, according to the International Consortium of Investigative Journalists.

Chief executive Noel Quinn, who officially took over in March, said the bank would further pivot into Asia as its European operations lose money.

It added that it was working on reforms to its corporate registry system that will require more checks on company directors.

Markets in Asia finished in the red on Monday, with Hong Kong-listed banks leading the losses after revelations that a number of large lenders had been implicated in moving large amounts of suspicious money for nearly 20 years.

While some banks said numerous transactions happened a long time ago, and they had since put robust anti-money laundering checks in place, investors were clearly anxious.



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