‘HSBC cash shipments could reach that volume only if drug proceeds included’
Mexico & drugs
HBMX, an HSBC affiliate in Mexico, illustrates how providing a correspondent account and US dollar services to a high-risk affiliate increased AML [anti-money laundering] risks for HBUS [HSBC’s US affiliate].
...HBMX opened accounts for high-risk clients, including Mexican casas de cambios and US money service businesses, such as Casa de Cambio Puebla and Sigue Corporation which later legal proceedings showed had laundered funds from illegal drug sales in the United States. HMBX also offered high-risk products, including providing US dollar accounts in the Cayman Islands to nearly 50,000 clients with $2.1 billion in assets, many of which supplied no KYC information and some of which misused their accounts on behalf of a drug cartel. HBMX was the single largest exporter of US dollars to HBUS, transferring over $3 billion in 2007 and $4 billion in 2008... Mexican and US law enforcement and regulatory authorities expressed concern that HBMX’s bulk cash shipments could reach that volume only if they included illegal drug proceeds that had been brought back to Mexico from the United States.
Saudi arabia & terror
HSBC has been active in Saudi Arabia, conducting substantial banking activities through affiliates as well as doing business with Saudi Arabia’s largest private financial institution, Al Rajhi Bank. After the 9/11 terrorist attack, evidence began to emerge that Al Rajhi Bank and some of its owners had links to financing organisations associated with terrorism, including evidence that the
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