No, HSBC did not

This week evidence emerged that HSBC abetted massive money laundering by Iran, terrorist organisations, drug cartels and organised criminals.

What we actually got this week was evidence that HSBC\’s internal controls were not good enough for anyone (the bank included) to know whether they were laundering money for these various peoples.

This is not subtly different from the accusation: it is very different.

7 thoughts on “No, HSBC did not”

  1. The eight billion dollars in cash flown from Mexico to New York? Nothing to see here, it’s just a breach of arcane regulatory rules.

    Tim adds: Quite. It could have been money laundering. Might not have been too. The proof is that the controls were lax. We’ve as yet no proof that it was laundering.

    As an example, when I was working in Russia in the 90s. The new $100 bill came out. Billions upon billions (of dollars) of them were flown into Russia. Knew the bloke organising the transport. Entirely fine and legal, US and Russia Treasuries knew and approved.

    The movement of cash is not in itself laundering.

  2. “The eight billion dollars in cash flown from Mexico to New York? ”

    This was a bank to bank transfer wasn’t it? The cash had to cross the american boarder too, through customs. Now if that was illegal drug money why didn’t they intervene?

  3. Tim, you’re saying that whereas HSBC ignored its legal obligations to take care not to facilitate money laundering, and whereas there’s plenty of illegal money in Mexico that wants laundering, the holders of that money may have chosen for reasons unknown not to take advantage? I suppose that’s possible, but I don’t see it as a point worth emphasizing.

    Tim adds: There is actually a significant difference. Drug money gets confiscated.

    Have they confiscated the $8 billion? So, even by the usual civil standards of proof it ain’t drug money.

  4. I may be missing the point, but wouldn’t drug money be going from US to Mexico, the opposite way to the drugs?

  5. Worstall, you are a simple fuckwit.

    If major corps cannot protect the market the the market fails.

    Your constant degredation of social society is summed up here.


  6. Judge: the money ends up in Mexico, at which point the Mexican gangs seek to launder it back into the legitimate financial system.

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