The Hongkong and Shanghai Banking Corporation Limited controversies

HSBC apologises and clarifies online banking terms

Company response

HSBC apologised after customers objected to terms that appeared to restrict the use of its online and mobile banking services outside Hong Kong. The bank clarified that customers could continue accessing the services outside Hong Kong and that it had no plans to amend them. The incident centred on customer concerns over the wording of the terms rather than any change to the services themselves.

Closure of League of Social Democrats accounts

Reports stated that HSBC closed accounts associated with Hong Kong's pro-democracy League of Social Democrats and declined to explain the decision. The episode drew attention because of the political identity of the affected organisation and wider concerns about banking access and de-risking.

FCA fines HSBC unit £64 million over AML failings

Fine or penalty

The Financial Conduct Authority fined a U.K. unit of HSBC Holdings £64 million after finding serious weaknesses in automated transaction-monitoring processes. The FCA said HSBC Bank failed to comply with money-laundering regulations between 2010 and 2018. HSBC said it was pleased to resolve the matter and had invested in new monitoring technologies.

Travelex ransomware attack and service disruption

Issue disclosure

Travelex was affected by a ransomware attack on New Year's Eve and took its global websites offline. Its update said some data had been encrypted, but that the extent was unknown and there was no evidence that structured personal customer data had been breached. The article also reported that online foreign-currency services at several banks were down. Travelex said it had opened an investigation, was working toward recovery, and had restored some internal systems; its CEO apologized for the inconvenience to partners and customers.

Investors sue HSBC over film investment schemes

Lawsuit filed

In a controversy reported in 2020, hundreds of investors sued HSBC, alleging that the bank should be held responsible for false promises made by its client, Eclipse Film Partners, in connection with film investment schemes. According to the report, the amount in dispute was up to £1.3 billion. The report describes the investors' claim as centering on HSBC's alleged responsibility for the promises made by its client; no further allegations, findings, or outcomes are stated in the source.

Hundreds of investors sued HSBC, alleging it should be held responsible for false promises made by its client, Eclipse Film Partners, in connection with film investment schemes. The article reports the amount in dispute as up to £1.3 billion.

Customer sues HSBC Bank Malaysia over alleged negligence

Lawsuit filed

A news report described a lawsuit brought by Lee Cheong Chee against HSBC Bank Malaysia. According to the report, the customer alleged that the bank failed to warn him about potentially fraudulent transactions and sought reimbursement of his losses. The report characterized these claims as allegations at the time of publication. The event was recorded as a controversy note concerning HSBC, based solely on the reported claims and the source account; no further details, findings, or outcomes were stated.

Lee Cheong Chee sued HSBC Bank Malaysia, alleging that the bank failed to warn him about potentially fraudulent transactions and seeking reimbursement of his losses. The claims were allegations at the time of the report.

HSBC clarifies its commitment to its China business

Company response

In June 2020, after claims circulated that HSBC would close its China business, HSBC issued a clarification stating that China is an important strategic market and that it would continue increasing investment in the mainland across business, services, talent and technology. The statement was reported as a response to the earlier claims about a possible closure of its China operations. The clarification set out the company's stated position that it remains committed to the mainland market and intends to expand its investment there in the areas named.

HSBC sues over alleged Hin Leong fraud

Lawsuit filed

In a controversy involving HSBC, the bank is suing the Lim family and an employee of Hin Leong, seeking to recover $85.3 million that it alleges was obtained with forged documents. The matter is reported as an allegation rather than an established determination; the source does not state that the claims have been proven or adjudicated. The dispute concerns the alleged use of forged documents in obtaining the funds, and HSBC's lawsuit seeks recovery of that amount. No further details on the parties' responses, the status of the proceedings, or any outcome are provided in the source.

HSBC is suing the Lim family and an employee of Hin Leong, seeking to recover $85.3 million that it alleges was obtained with forged documents. The allegations are reported as allegations, not as an established determination.

HSBC Swiss private banking arm agrees to pay $192 million over US tax-evasion conduct

Settlement

HSBC's Swiss private banking arm agreed to pay the US Justice Department $192 million after admitting that it helped individuals and corporations evade federal taxes. The payment includes unpaid taxes, forfeited fees and a fine.

Swiss prosecutor opens money-laundering procedure involving HSBC's private bank

Investigation

Swiss authorities raided HSBC's private bank in Geneva on 18 February. The prosecutor's office said it was opening a criminal procedure against the bank and unknown others for aggravated money laundering; the article describes the case as based on suspicions.