Prosecutors raid HSBC’s Swiss office over ‘money laundering’ claim

Prosecutors in Switzerland have launched an investigation into allegations of money laundering at HSBC’s Swiss private banking arm. It follows a report that the bank turned a blind eye to illegal activities of arms dealers and traders in blood diamonds while helping rich people evade taxes. Geneva’s prosecutors said that the premises of HSBC Private Bank (Switzerland) in the city were being searched. The prosecutors said that although the probe was against the bank itself, the direction it would take may evolve.

The investigation might be broadened to include physical persons suspected of committing or participating in acts of money laundering.

Geneva prosecutors

The announcement came just over a week after HSBC Switzerland found itself at the centre of a global scandal following the publication of secret documents. The cache of files, made public in a French newspaper, claimed HSBC’s Swiss private banking arm helped clients in more than 200 countries evade taxes on accounts containing £77bn ($119bn). The files, which include the details of 30,000 accounts and also include the names of celebrities, were originally stolen by former HSBC IT worker Herve Falciani in 2007. The documents were passed to the authorities in France and on to the HMRC which says it has subsequently clawed back £135m from some of the 3,600 Britons identified as potentially avoiding tax.

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