In July 2012 the US Senate Permanent Subcommittee on Investigations published “U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History” and held a hearing on 17 July 2012.
The report said huge sums of Mexican drug money almost certainly passed through HSBC. It found that the bank failed to scrutinise thousands of questionable transactions and let clients go without proper vetting.
It also found that some HSBC affiliates got around US bans on transactions with Iran and other countries. It described HSBC’s extensive dealings with Saudi Arabia’s Al Rajhi Bank, which the report said was founded in part by “an early financial benefactor of al-Qaida”.
Subcommittee chairman Senator Carl Levin noted that in 2009 two-thirds of the US dollar payments processed by HSBC Bank USA came from HSBC affiliates in other countries. The report concluded that the US regulator, the Office of the Comptroller of the Currency, had failed to monitor HSBC properly.
HSBC’s position
HSBC said its executives would apologise at the hearing.
The evidence
3 sources- Exhibit AU.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History (hearing page and report)US Senate Homeland Security & Governmental Affairs Committee · 17 July 2012 · hsgac.senate.govOfficial record
- Exhibit BSenate Hearing 112-597 (official transcript and exhibits)US Government Publishing Office · govinfo.govOfficial record
- Exhibit CHSBC ‘allowed drug cartels to launder money’Al Jazeera · 17 July 2012 · aljazeera.com
Last checked 2 November 2026. Something wrong or out of date? Tell us and we’ll correct it.