There’s fear that one of the biggest banking giants in the world HSBC may lose its US banking licence.
This will depend on the reaction from the Oval Office regarding the bank’s role in its overall banking activities on the Panama records. If the US government probes the bank and nails it for illegal activities over the Panama Papers tax leaks, then there’s a great chance that the HSBC will not be spared.
Banking and finance professionals say there will be much pressure on the British government to follow it’s Banking Regulation Acts against HSBC if the leaked documents proves that the bank engaged in money laundering activities.
A report confirmed that the available evidence shows the HSBC and/or its affiliates used a law firm named Mossack Fonseca to set up 2,300 Shell Companies for clients.
According to the report, French police raided the headquarters of Societe Generale bank which has also been accused of having links to Panama.
A task force has been created by the French Prime Minister David Cameron to ascertain the links between Panama and the UK financial system.
It is believed that the US Regulators will quickly step in if Britain fails to do what is necessary in the probe.
If the US government finds the bank guilty, the Oval Office will have the rights to place sanctions, fines or completely withdraw the bank’s operating license in the US.
HSBC’ s future as a bank is at risk.
Records say that in 2012, HSBC was fined £1.2billion and saved by the Senate over its links to ‘drug kingpins and rogue nations’ during a Mexican money-laundering scandal.
Though the HSBC is denying the allegations and calling it ‘historical’, Jacob Rees-Mogg, a Conservative member of the Treasury Select Committee said: ‘American regulators are incredibly tough. It’s very important that domestic regulators look into this.’
All these conglomerates are blood suckers. Losing their banking licence in the US won’t make them change.