HSBC’s Geneva office raided as Swiss open investigation

Swiss prosecutor opens an investigation into allegations of “aggravated money-laundering” following ICIJ’s Swiss Leaks revelations.

HSBC Geneva

Swiss prosecutors have opened a criminal investigation against HSBC Private Bank, and raided the bank’s Geneva offices for evidence as it probes allegations of “aggravated money-laundering.”

Citing “recent public revelations” about HSBC’s activities in Switzerland, the prosecutor’s office warned that the investigation could extend to individual employees at the bank as it probes whether adequate measures were put in place to prevent criminal activity.

Attorney general Olivier Jornot and first prosecutor Yves Bertossa led the search of HSBC’s Geneva headquarters this morning, along with plain clothes investigators and financial analysts, according to ICIJ’s media partner Le Temps. The bank’s compliance department offices were also searched.

"I decided, following information made public about HSBC bank, to open a criminal investigation and to verify this information. The goal of this investigation is to verify that the information made public is well-founded and if there are, in fact, allegations that can be made against the bank or against people – be they collaborators or clients," Jornot told Swiss media. "The police raid is ongoing and will probably last the whole day."

The raid comes amid growing scrutiny of the bank following ICIJ’s Swiss Leaks investigation. Together with more than 140 journalists from more than 50 media outlets, ICIJ analyzed a series of leaked files based on information taken from HSBC’s Swiss branch and handed to French authorities by former bank employee and IT specialist Hervé Falciani.

The Swiss Leaks revealed that the bank played an active role in assisting some clients with tax evasion, and also continued to serve other clients after they had been unfavorably named by the United Nations, in court documents and in the media as connected to arms trafficking, conflict diamonds and bribery.

HSBC conceded to ICIJ and its media partners that standards at the bank’s Swiss branch were “significantly lower” at the time covered by the leaked files (which include account details up to 2007), but said “significant steps” had been taken since then to implement reform and end business with questionable clients. The bank claims to have reduced its client base by almost 70 percent since 2007.

Since the publication of the Swiss Leaks investigation, there has been pressure from inside Switzerland for action against HSBC.

In response to the Swiss prosecutor’s announcement on Wednesday, the bank issued a brief statement reiterating that it would continue to cooperate fully with Swiss authorities.

HSBC currently faces criminal investigations in France, Belgium and Argentina. Regulators and politicians in other countries have also announced pending investigations into either the bank or some of its Swiss clients.

In the United States, a law enforcement official confirmed to ICIJ and the Center for Public Integrity that the Department of Justice's tax division has been investigating HSBC for tax crimes since 2010, using the leaked HSBC files which came to the department via the Internal Revenue Service. However nominee attorney general Loretta Lynch, who faces questions over her 2012 deal with HSBC as part of a federal money-laundering prosecution, did not have the leaked files as part of her own investigation into the bank, which was initiated by a separate DOJ division.

In the United Kingdom, just days after HSBC bought full page advertisments in a number of Sunday newspapers to apologize to customers and staff, former chief political commentator for London's Daily Telegraph Peter Oborne has spoken out against the newspaper's lack of coverage of the Swiss Leaks affair, and has called for an independent inquiry into the paper's editorial guidelines.

Oborne cited perceived interference from management and owners in editorial coverage as a reason for his resignation, and said the paper's lack of coverage of the Swiss Leaks story was part of pattern concerning critical stories about HSBC, a major advertiser with the Telegraph.

"The Telegraph’s recent coverage of HSBC amounts to a form of fraud on its readers. It has been placing what it perceives to be the interests of a major international bank above its duty to bring the news to Telegraph readers," he wrote in an opinion piece for Open Democracy that has since been widely reported by the British press.

Read more about the impact from our investigations, and find out how you can support ICIJ's work

Email newsletter Find out first! Receive ICIJ's investigations by email

FinCEN Files

Lessons from award-winning FinCEN Files and Luanda Leaks investigations

Jul 23, 2021
European Parliament and EU flag

EU to propose watchdog to tackle anti-money laundering failures exposed by FinCEN Files

Jul 16, 2021
Protesters in London outside the Chinese Embassy

As global pressure over human rights abuses in Xinjiang picks up, China remains defiant 

Jul 15, 2021

On the decline since Panama Papers, Malta punished for dirty money reputation

Jul 08, 2021
Isabel dos Santos and Sindika Dokolo

Dutch court sides with report calling dos Santos-linked energy deal an ‘act of corruption’

Jun 28, 2021

Facing global pressure, UAE to begin fining violators of new corporate transparency rules

Jun 21, 2021
ICIJ is dedicated to ensuring all reports we publish are accurate. If you believe you have found an inaccuracy let us know.