Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  HSBC Holdings plc    HSBA   GB0005405286

HSBC HOLDINGS PLC

(HSBA)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

HSBC : Class Action Law Suits Are Being Brought Against Two Banks In The US For Alleged Money Laundering Failings

10/14/2020 | 10:09am EST

Josh Ray of financial crime specialists Rahman Ravelli sees this as a reminder of the importance of compliance.

HSBC and Standard Chartered are facing class action law suits in the US following allegations that they failed to tackle money laundering.

The legal action comes in the wake of the huge leak of 2,100 suspicious activity reports (SARs) filed with the US Treasury Department'sFinancial Crimes Enforcement Network (FinCEN) between 2000 and 2017.

The leaked documents, which have become known as the FinCEN Files, are at the centre of allegations that the banks did little to prevent the movement of large amounts of money that were suspected of being the proceeds of crime.

The class actions are being prepared on behalf of investors in the two banks, who claim they lost money when the banks' share prices fell as a result of the leak. HSBC's share price fell to its lowest level in 25 years when the documents were made public; falling 5.3%. On the same day, Standard Chartered shares fell by 5.8%.

HSBC has said that it has worked since 2012 on improving its ability to tackle financial crime in more than 60 countries. But these class action suits show how the financial cost of compliance failures can go far beyond just regulatory penalties.  By co-operating with authorities and admitting their guilt, banks like HSBC and Standard Chartered open themselves up to shareholder litigation; which can potentially cost tens of millions more in legal fees and settlements. 

This a situation that emphasises the importance of being proactive in tackling compliance issues. Such an approach can involve conducting periodic "stress tests" of policies and procedures to ensure they are fit for purpose. Such an approach is necessary if a company is to prevent any regulatory problems before they develop and spread, causing major, costly problems.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Joshua L. Ray
Rahman Ravelli Solicitors
36 Whitefriars Street
London
EC4Y 8BQ
UK
Tel: 203947 1539
E-mail: aziz.rahman@rahmanravelli.co.uk
URL: www.rahmanravelli.co.uk

© Mondaq Ltd, 2020 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source Business Briefing

Stocks mentioned in the article
ChangeLast1st jan.
HSBC HOLDINGS PLC 0.72% 421.35 Delayed Quote.-29.32%
STANDARD CHARTERED PLC -0.70% 484.1 Delayed Quote.-31.57%
All news about HSBC HOLDINGS PLC
12/02HSBC : Canada asks court to throw out expert affidavit in Huawei CFO's U.S. extr..
RE
12/02Mustier exit complicates Italian attempt at MPS deal with UniCredit
RE
12/02FTSE 100's surge on UK vaccine approval pulls European shares off lows
RE
12/02HSBC HLDGS : Deutsche Bank remains a Sell rating
MD
12/02Hong Kong shares close lower on tech, healthcare retreat
RE
12/02FTSE 100's surge on UK vaccine approval pulls European shares off lows
RE
12/02Hong Kong shares close lower on tech, healthcare retreat
RE
12/01Italy's UniCredit says board would never agree to harmful deal
RE
12/01UK Municipal Bonds Agency cancels planned sterling bond issue
RE
12/01HSBC : Notification of transactions by persons discharging managerial responsibi..
PU
More news
Financials (USD)
Sales 2020 50 171 M - -
Net income 2020 3 582 M - -
Net Debt 2020 - - -
P/E ratio 2020 24,5x
Yield 2020 2,18%
Capitalization 85 371 M 115 B -
Capi. / Sales 2020 1,70x
Capi. / Sales 2021 1,71x
Nbr of Employees 230 317
Free-Float 98,1%
Chart HSBC HOLDINGS PLC
Duration : Period :
HSBC Holdings plc Technical Analysis Chart | HSBA | GB0005405286 | MarketScreener
Technical analysis trends HSBC HOLDINGS PLC
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 24
Average target price 5,09 $
Last Close Price 4,21 $
Spread / Highest target 75,8%
Spread / Average Target 20,9%
Spread / Lowest Target -11,1%
EPS Revisions
Managers
NameTitle
Noel Paul Quinn Group Chief Executive Officer & Executive Director
Mark Edward Tucker Non-Executive Group Chairman
John M. Hinshaw Group Chief Operating Officer
Ewen James Stevenson Chief Financial Officer & Executive Director
May Lung Cha Independent Non-Executive Director
Sector and Competitors