British media: The leaked secrets show that HSBC has allowed funds involved in the Ponzi scheme to be transferred to Hong Kong via the US

Financial News

Written by: Xu Shihao

2020-09-21 09:57

Last update date: 2020-09-21 10:24

HSBC (0005) recently broke out a lot of negative news. Following the earlier reports or being included in the "Unreliable Entity List" by the Chinese authorities, the British Broadcasting Corporation (BBC) quoted the leaked secret report and HSBC learned of 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 receive US$80 million (624 million). Hong Kong dollar) 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 fraudster’s account in Hong Kong, suspected to be a "Ponzi scheme". It was notified again in February and March 2014 that suspicious transactions involving US$15.4 million (approximately HK$120 million) and US$9.2 million (approximately HK$71.76 million) were involved, but it would not be until April 2014 that the US Securities and Exchange Commission (SEC ) After suing WCM777, HSBC closed its Hong Kong account, but the relevant account has 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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