HSBC failed to control drug-money laundering, Senate finds

Corruption in business has always led back to the topic of business ethics and the misguided judgements leading up to the malfeasance. Such is the case with HSBC money laundering for drug and terrorist dealings. Back in 2007, the arrest of Zhenli Ye Gon, an accused drug ingredient supplier and a long-time client of HSBC Holdings, brought up suspicious concerns to the public. Before the incident, authorities had raised attention to large amounts of money that had to have come from drug dealing in Gon’s and many other Mexican accounts. It turned out that HSBC had been passing along drug money for many clients for years; some clients even had relations with terrorism.

This immoral behavior was intended to increase bank revenue and that’s where the line of ethics had been crossed – erased even. The issue here is that HSBC knowingly took in shady clients and disguised the financial sources of these clients to further its own interests – raising revenue. In addition, HSBC continued to bury its illicit activities by hiding data and replacing those in charge of preventing anti-money laundering efforts. Of course, whenever a business is caught red handed, they will make a “sincere” public apology and try to correct its wrongdoings. If HSBC were not caught, would they continue its unscrupulous behaviours? Most likely.

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Slater, Joanna. “HSBC Failed to Control Drug-money Laundering, Senate Finds.” The Globe and Mail. The Globe and Mail, 17 July 2012. Web. 10 Sept. 2012. <http://www.theglobeandmail.com/report-on-business/international-business/us-business/hsbc-failed-to-control-drug-money-laundering-senate-finds/article4422546/>.