HSBC HK shares fall to lowest since 1995, StanChart drops on FinCEN leak

21.09.2020 - Evdokimov Roman
HSBC HK shares fall to lowest since 1995, StanChart drops on FinCEN leak

HSBC and Standard Chartered’s Hong Kong shares fell on Monday after news that they and other banks moved large sums of allegedly illegitimate funds for almost two decades despite the questionable origins of the money.

Media reports were based on leaked suspicious activity reports (SARs) filed by banks and financial firms with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The reports highlighted challenges for financial and regulatory institutions trying to halt the flow of illicit money despite billion-dollar investments and penalties imposed on banking institutions in the last decade.

HSBC Hong Kong shares dropped 4.4% to HK$29.69 on Monday, its lowest level since May 1995. StanChart fell 3.8% to HK$35.80, its lowest since late May, while the Hang Seng index slid 0.4%. 

HSBC and Standard Chartered were among the global banks sanctioned for billions of dollars in recent years over violations of anti-money laundering rules and U.S. sanctions on Iran.

Over 2,100 SARs were obtained by the media, which contained information about $2 trillion worth of transactions from 1999 to 2017. The transactions were flagged as suspicious by internal compliance departments of financial institutions. However, the leaked documents were only a fraction of all the reports filed with FinCEN.

The SARs showed that banks moved funds for companies in offshore jurisdictions, including the British Virgin Islands.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?