Financial News May 3rd 2012 -- HSBC Money-Laundering, 'The Scream' Breaks Record at $119.9 Million
--According to Reuters, HSBC may be in hot water for alleged money-laundering lapses. In April 2003, the Federal Reserve Bank of New York, and New York state bank regulators cracked the whip on HSBC Bank, ordering it to do a better job, of policing itself for suspicious money flows. Nearly a decade later, the effort has failed to satisfy law-enforcement officials. According to investigation documents, in 2005, the bank violated the Bank Secrecy Act and other anti-money laundering laws, on a massive scale. HSBC did so, they say, by not adequately reviewing hundreds of billions of dollars, in transactions for links to drug trafficking, terrorist financing and other criminal activity. HSBC's US anti-money laundering division has experienced high turnover among executives. Since 2005, at least half a dozen overseers have come and gone, with compliance staff also encountering pushback from bankers, eager to maintain relationships with lucrative clients, whose dealings have raised red flags. HSBC's private-banking and retail operations office even fired a longtime private banker for alleged sexual harassment, after he warned compliance officers that clients were engaged in shady dealings. --Bloomberg reports that Federal authorities have charged 107 people with Medicare fraud, in a multistate operation, alleging schemes involving about 452 million dollars in false billing. The US charged doctors, nurses and other licensed medical professionals, with submitting bills to Medicare <b>...</b>
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