01 Investigation
Author: Du Lixiang
2020-08-10 16:01
Last update date: 2020-08-10 16:10For the extradition case of Meng Wanzhou, vice chairman of Chinese telecommunications equipment manufacturer Huawei, the Supreme Court of British Columbia will hold a formal hearing in April 2021 to determine whether the US accusations against Meng are likely to be established. One of the allegations of the United States against Meng is that it made false statements to HSBC, and one of the evidence is Meng’s briefing on Huawei’s Iran business in 2013 to the bank’s staff.
HSBC has signed an agreement with the US Department of Justice to appoint an independent inspector recognized by the other party to review its business; when "Hong Kong 01" reviewed HSBC's announcement of its results in recent years, it disclosed that the inspector had reviewed the bank's business in multiple countries and regions for two consecutive years. Foreign media reported that the monitor had provided the US with HSBC's Huawei transaction information, leading to Meng's arrest.
Regarding HSBC's review of multi-regional operations by inspectors recognized by the US government, the Hong Kong Monetary Authority said it would not comment on individual cases and pointed out that local regulatory agencies would maintain communication on different issues. HSBC reiterated that it should provide factual information at the formal request of the US Department of Justice and did not participate in the decision to investigate Huawei.
For the extradition case of Meng Wanzhou, vice chairman of Chinese telecommunications equipment manufacturer Huawei, the Supreme Court of British Columbia will hold a formal hearing in April 2021 to determine whether the US accusations against Meng are likely to be established. (Data Picture/Reuters)
The Independent Ombudsman of the U.S. Department of Justice reviews all documents available to HSBC
In 2012, HSBC was accused by the United States of violating the country’s sanctions and bans and laundering money for drug cartels in countries such as Iran and Cuba. The bank subsequently agreed to pay the United States a fine of US$1.92 billion (approximately HK$15 billion) and signed a five-year period. The deferred prosecution agreement for 2016 included the need to hire an independent compliance inspector approved by the US Department of Justice to review its business.
The deferred prosecution agreement was signed by HSBC Holdings (on behalf of all its subsidiaries and subsidiaries) and the US Department of Justice. The terms of the independent compliance inspector stipulate that HSBC must cooperate fully with the inspector to allow it to reasonably access all information , Documents, records.
According to the agreement, if HSBC does not allow the inspector to access the information due to legal reasons, HSBC must resolve the issue of access to the information with the inspector; if it cannot be resolved, HSBC must provide a general description of the information. The Ministry of Justice may further request access to such information.
The agreement also stated that if the inspector finds improper conduct during the compliance investigation, he will first notify the legal director of HSBC to take action, but if the inspector believes that improper conduct or serious violations are involved, he will directly notify the US Department of Justice. The Wall Street Journal reported in 2018 that the inspector was the consulting company Exiger.
HSBC and the U.S. Department of Justice have signed a five-year deferred prosecution agreement. The terms include the need to hire an independent compliance inspector approved by the U.S. Department of Justice to review its business. If the inspector finds improper behavior, he can notify the U.S. Department of Justice. (Data Picture/Reuters)
HSBC results announcement: Ombudsman reviews multi-region business to identify potential sanctions compliance issues
According to HSBC’s 2016 and 2017 performance announcements, for two consecutive years, it listed the appointment of an independent compliance inspector under the deferred prosecution agreement, and stated that “through the review of multiple countries/regions, the inspector has identified potential Anti-money laundering and sanctions compliance issues, the US Department of Justice and HSBC are now conducting an in-depth review."
The Wall Street Journal reported in December 2018 that supervisors dispatched by the US government to HSBC discovered suspicious transaction records in Huawei’s accounts and reported them to the authorities, which eventually led to the arrest of Meng Wanzhou. However, as early as December 2012, a "Reuters" investigation found that Huawei's business partner Xingtong provided Iran with embargoed computer hardware, and that Huawei and Xingtong had a close relationship.
A further investigation by Reuters in February 2019 found that HSBC had requested Huawei to close the bank accounts of Xingtong and another related company in 2013. It also pointed out that HSBC had ordered the U.S. Department of Justice to revoke sanctions against the bank from 2016 to 2017. In criminal prosecution, Huawei conducted internal investigations and reported the findings to the U.S. Department of Justice. The U.S. used relevant information to file charges against Meng Wanzhou.
Chinese state media, including the People’s Daily, recently published articles stating that the United States used the briefing presented by Meng to HSBC as the key evidence to accuse Meng Ti of accusing HSBC of participating in "framing" Huawei and Meng Wanzhou.
Chinese state media, including the People’s Daily, recently published articles stating that the United States used the briefing presented by Meng to HSBC as the key evidence to accuse Meng Ti of accusing HSBC of participating in "framing" Huawei and Meng Wanzhou. HSBC denied the allegations by state media, saying that it had no malicious intent against Huawei and did not "frame" Huawei. (Profile picture/Photo by Zheng Zifeng)
The Monetary Authority does not comment on HSBC: there is no "framework" on Huawei
Regarding HSBC's review of multi-regional operations by inspectors approved by the US government, a spokesperson for the Hong Kong Monetary Authority said that it does not comment on individual cases and that in accordance with international practices, local regulatory agencies will maintain communication on different issues.
An HSBC spokesperson said that the bank did not participate in the US Department of Justice’s decision to investigate Huawei, nor did it interfere with the US Department of Justice’s decision to arrest Huawei’s chief financial officer or prosecute Huawei. Provide materials, and the bank only provides factual information, emphasizing that there is no "fabricated" evidence or "concealed" facts, and "will not distort facts or harm any customers for our own benefit."
The spokesperson said that HSBC has never "set traps to trap Huawei." After paying attention to the negative reports on the relationship between Huawei and Xingtong in December 2012 and January 2013, the bank asked Huawei routinely, "This is Perform the normal process of the bank’s understanding of the customer’s obligations.”
The spokesperson continued, "The context of the development of the Huawei incident clearly shows that the US investigation of Huawei was not triggered by HSBC. The US's detailed review of Huawei already existed before the HSBC Group was involved in late 2016," he said. Huawei has no malice, nor has it "framed" Huawei.
Chinese state media, including the People’s Daily, recently published articles stating that the United States used the briefing presented by Meng to HSBC as the key evidence to accuse Meng Ti of accusing HSBC of participating in "framing" Huawei and Meng Wanzhou. HSBC denied the allegations by state media, saying that it had no malicious intent against Huawei and did not "frame" Huawei. (Profile picture/Photo by Wu Zhongkun)
The case of Meng Wanzhou│reported that HSBC reported to the US that Huawei Meng’s remote re-lending and HSBC “cut off seats”
Canada guides Meng Wanzhou to the United States and conditions have been met
"Southern Morning": Huawei intends to sue HSBC to hire 5 law firms to assist Meng Wanzhou
[Huawei Meng Wanzhou arrested] HSBC denies allegations of conspiracy with the US
[Meng Wanzhou’s Extradition Case] Official media: HSBC’s role in framing a US political case
Huawei Meng Wanzhou arrested Huawei (Huawei) HSBC HSBC
