HSBC share price: Bank attempts to block publication of money-laundering report

money-laundering
money-laundering

HSBC Holdings Plc (LON:HSBA) is fighting to prevent the publication of a report on its methods to comply with US money-laundering rules imposed in 2012, the Guardian has reported.

Now one individual, Hubert Dean Moore, who used to have a mortgage with HSBC, is suing to have the monitor’s first report unsealed by the court, the Guardian reported yesterday. The bank is trying to prevent that from happening, saying that it could be left vulnerable to money laundering if the report is released to the public.

Moore is also being resisted by the US Department of Justice. Both HSBC and the DoJ have sent letters filed in the eastern district court of New York to judge John Gleeson, arguing that the report should remain private.

The lender referred to arguments made last summer when the DoJ set out the reasons the report should not be made public. HSBC said that publication of the document would compromise the ability of the monitor and the US government to assess the bank’s progress in improving its anti-money laundering and sanctions compliance programme.

It also warned that publication would make it easier for criminals seeking to engage in activities such as money laundering to exploit current weakness in the anti-money laundering at HSBC and potentially other financial institutions.

In addition to these arguments, HSBC pointed out that Moore had not identified a public interest case for publishing the report that would outweigh the negative consequences.
In today’s trading, HSBC shares were down 2.4 percent at 490.10p, as of 12:19 GMT.

The company’s market capitalisation currently stands at £95.8 billion.

As of Jan 14, 2016, the consensus forecast amongst 26 polled investment analysts covering HSBC Holdings plc advises that the company will outperform the market.

The same consensus estimate has been maintained since September 09, 2015, when sentiment of investment analysts improved from “hold”.

As of 14:15 GMT, Friday, 15 January, HSBC Holdings plc share price is 486.13p.

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