HSBC under Swiss, French investigation for money laundering linked to Lebanon

BEIRUT — HSBC’s Swiss private bank is being probed by Swiss and French law enforcement authorities over money laundering allegations, the bank revealed in its 2025 interim results report on Wednesday. 

Authorities are examining breaches “in connection with alleged money laundering offences in respect of two historical banking relationships,” the statement said without specifying when the probes were launched. “These investigations are at an early stage,” it added.

In June, 2024, the Swiss Financial Market Supervisory Authority (FINMA), Switzerland’s financial watchdog, accused HSBC's Swiss branch of failing to prevent money laundering involving two unnamed politically exposed persons from Lebanon. 

FINMA had identified multiple transactions conducted between 2002 and 2015 that were insufficiently clarified and documented and totaled over $300 million. The funds were transferred from a state institution in Lebanon to Switzerland, and most were returned shortly afterward to different accounts in Lebanon.

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The financial regulator had imposed a series of measures against the bank, including prohibiting the opening of new business relationships with politically exposed persons (PEPs) until it carried out a review of its anti-money laundering practices and of all of its high-risk business relationships, in addition to those with PEPs.

Disgraced former central bank governor Riad Salameh – currently in detention– and his brother Raja – placed under formal investigation – are accused of funneling $330 million to Swiss bank accounts through Forry Associates Ltd, an offshore company 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 held at UBS, Credit Suisse, Julius Baer, EFG, and Pictet. The brothers have repeatedly denied any wrongdoing.

“It is not practicable at this time for HSBC to predict the resolution of these matters, including the timing or any possible impact on HSBC,” the bank said, but acknowledged that the consequences could be “significant.”