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HSBC Whistle-Blower Presses for New Laundering Probe

Posted: August 30, 2013
By: Chris Cumming
Source: AmericanBanker.com
Practice Areas: Whistleblowers, Qui Tam & False Claims Act

SBC executives probably hoped that paying a record $1.9 billion fine last year would close the books on its money-laundering violations.

But a former employee is alleging that the bank continued to break anti-money-laundering rules even as it claimed to be reforming its controls, and he has asked federal authorities to open a new investigation.

Everett Stern, who worked in HSBC Bank USA's anti-money-laundering division in 2010 and 2011, unveiled the allegations Thursday at a protest against the bank in New York. In March, Stern and the law firm Berger & Montague submitted his evidence - which includes internal emails and other documents he collected while working at the bank - to the Securities and Exchange Commission, the Justice Department and banking regulators, claiming that the bank continued to flout money laundering rules while he was employed there.

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