Dec 11, 2019
HSBC to pay $192m penalty in US tax evasion case
HSBC's private bank will pay $192m in penalties and admit to helping US customers hide more than $1bn in assets from tax authorities as part of a deferred prosecution agreement with the US Department of Justice. The DoJ said that as of 2007, the private bank had $1.26bn in US client assets that had not been declared to the US tax authorities. The penalty includes the forfeiture of $72m in proceeds derived from illegal activities, $61m in restitution to the Internal Revenue Service, and a penalty of $60m. The penalty amount took into consideration that HSBC Switzerland "Self-reported its conduct" and co-operated with investigators, the justice department said. In early 2018, HSBC warned that investigations into tax evasion and money laundering at the private bank could lead to penalties exceeding $1.5bn in a worst-case scenario. An earlier version incorrectly linked HSBC to a court case involving a different bank.
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