
HSBC headquarters in London. (Credit: Justin Tallis/AFP)
On Tuesday, the Swiss Financial Market Supervisory Authority (FINMA) accused HSBC's Swiss branch of failing to prevent money laundering involving two unnamed politically exposed persons.
As a result, FINMA has imposed measures against the bank, including prohibiting opening new business relationships with politically exposed persons until their full implementation. A similar procedure was once initiated in December 2021, during which the bank cooperated, according to FINMA.
FINMA identified numerous insufficiently clarified and documented transactions, conducted between 2002 and 2015, totaling over $300 million. The funds were transferred from a state institution in Lebanon to Switzerland, and generally returned shortly afterward to other accounts in Lebanon.
In a written response, HSBC, headquartered in London, announced its intention to appeal the decision.
Jean Tannous, the general attorney at the Lebanese financial prosecutor's office, stated on X that these funds came from the Banque du Liban (BDL). He suggested that Lebanon could "sue HSBC for significant compensation," referring to alleged financial crimes linked to former BDL governor Riad Salameh, who is under multiple judicial investigations in Lebanon and several European countries.
Riad Salameh and his brother Raja are accused of transferring $330 million to Swiss accounts via the offshore company Forry Associates Ltd, registered in the British Virgin Islands. According to the Swiss newspaper Sonntags Zeitung, about $250 million was deposited into Raja Salameh's personal account at HSBC's Geneva branch. Additional funds were deposited at UBS, Credit Suisse, Julius Baer, EFG, and Pictet. The brothers have repeatedly denied any wrongdoing.