HSBC Reportedly Being Investigated for Money Laundering

HSBC Reportedly Being Investigated for Money Laundering

The U.S. Senate is reportedly investigating HSBC for money laundering.  See Carrick Mollenkamp, Exclusive: Senate Investigating HSBC for Money Laundering (1/25/12), here.  I don't know precisely what that means in terms of the topic of this blog.  I can say that my impression is that, generally speaking, the U.S. Government would treat money laundering that touches important U.S. interests as more important than promoting U.S. tax evasion.

Keep in mind that the U.S. angst was great over UBS tax evasion actions for U.S. depositors.  HSBC did much of that same thing as UBS, although perhaps not at the same brazen scale as UBS.  But UBS was hammered for its tax evasion conduct without money laundering being in the mix...

I am sure there is more to come.

U.S. HSBC depositors who have not yet resolved their U.S. tax situations should be concerned.  You may quickly be on the chopping block as HSBC tries to mitigate the damage.  While I doubt that the U.S. Government would be assuaged by merely delivering up the U.S. depositors HSBC helped with their U.S. taxes, still such cooperation might buy some time or be seen as a good faith action that will get something somewhere down the road...

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View Jack Townsend's input in its entirety on the Federal Tax Crimes blog site.

For additonal insight, explore Tax Crimes, authored by Jack Townsend and available at the LexisNexis® Store.

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