Financial News
Written by: Xu Shihao
2020-09-21 09:57
Last update date: 2020-09-21 09:57
HSBC (0005) recently broke out a lot of negative news. Following an earlier report or being included in the "Unreliable Entity List" by the Chinese authorities, the British Broadcasting Corporation (BBC) quoted a leaked report that HSBC learned of Ponzi After the Ponzi scheme, fraudsters are still allowed to transfer tens of millions of dollars from the United States to Hong Kong.
The report cited more than 2,000 FinCEN documents. The "Suspicious Activity Report" (SAR) submitted by banks to U.S. regulatory authorities showed that in 2013 and 2014, HSBC allowed scammers to have US$80 million (HK$624 million). ) Transfer to Hong Kong account.
Involving $80 million
The "Ponzi scheme" involved US$80 million to solicit members or investors in a tiered manner. A Chinese man transliterated as Ming Xu (Ming Xu) called himself "Dr Phil" and operated the global investment bank World Capital Market ( WCM777), promised to customers that there will be 1 times the profit in 100 days, and it is estimated that thousands of people will participate in it.
According to confidential documents, HSBC first submitted SAR on October 29, 2013, stating that more than US$6 million (approximately HK$46.8 million) was transferred to the scammer’s account in Hong Kong, suspected to be a "Ponzi scheme". It was notified in February and March 2014 that suspicious transactions involving USD 15.4 million (approximately HK$120 million) and USD 9.2 million (approximately HK$71.76 million) were involved, but it will not be until April 2014 by the US Securities and Exchange Commission (SEC). HSBC closed its Hong Kong account only after suing WCM777, but the relevant account had almost no deposits; Xu Ming was arrested by the Chinese authorities in 2017 and sentenced to three years in prison.
HSBC stated that it has always fulfilled its legal obligation to notify relevant suspicious activities.
The bank stated that since 2012, it has comprehensively reviewed its ability to combat financial crimes in more than 60 jurisdictions.
The Hang Seng Index fell 148 points, HSBC plunged nearly 4%, and Tencent fell less than 1%.
HSBC will not provide customers with HSBC Holdings and Hang Seng stock margins from December 7
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