HSBC Holdings plc is a British  multinational banking and financial services holding company , tracing its origin to a hong in Hong Kong. It was established in its present form in London in by The Hongkong and Shanghai Banking Corporation to act as a new group holding company.
The company continues to see both the United Kingdom and Hong Kong as its "home markets". HSBC is organised within four business groups: The ICIJ alleges that the bank profited from doing business with tax evaders and other clients. In , HSBC was sued by Mexican families involved in deaths by organised crime gangs for processing funds " money laundering " for the Sinaloa Cartel. On 6 October , it was renamed by the Legislative Council, by an amendment to its governing ordinance originally made in , "The Hongkong and Shanghai Banking Corporation Limited", and became registered as a regulated bank with the then Banking Commissioner of the Government of Hong Kong.
As part of the takeover conditions for the acquisition, HSBC Holdings plc was required to relocate its world headquarters from Hong Kong to London in WTAS , would purchase a portion of Andersen's tax practice.
In , Bloomberg Markets magazine accused HSBC of money-laundering for drug dealers and state sponsors of terrorism.
Then-CEO Stephen Green said that "This was a singular and wholly irresponsible attack on the bank's international compliance procedures", but subsequent investigation indicated that it was accurate and proved that the bank was involved in money laundering for the Sinaloa Cartel and throughout Mexico. The record of dysfunction that prevailed at HSBC for many years was astonishing. With the benefit of hindsight, this is an acquisition we wish we had not undertaken.
Although it was at the centre of the subprime storm, the wider group has weathered the financial crisis of — better than other global banks. On 11 May the new chief executive Stuart Gulliver announced that HSBC would refocus its business strategy and that a large-scale retrenchment of operations, particularly in respect of the retail sector, was planned. Group Chief Executive Michael Geoghegan was expected to become the next chairman.
However, while many current and former senior employees supported the tradition of promoting the chief executive to chairman, many shareholders instead pushed for an external candidate. There will be something like 25, roles eliminated between now and the end of In August "to align our U.
Senate permanent subcommittee for investigations for severe deficiencies in its anti-money laundering practices see Controversies. On 16 July the committee presented its findings. This investigation followed on from a probe by the US Federal Reserve and Office of the Comptroller of the Currency found that there was "significant potential for unreported money laundering or terrorist financing". We have said we are profoundly sorry for them, and we do so again.
A page brochure published on the HSBC website provides details of results in terms of markets, strategies, and businesses, as well as giving an outline of future plans. The ICIJ alleges that the bank profited from doing business with corrupt politicians, dictators, tax evaders, dealers of blood diamonds, arms dealers and other clients. In , the bank was mentioned numerous times in connection with the Panama Papers investigation.
Many Syrians were angered when their accounts were judged high-risk and closed, despite the bank reportedly telling Mossack Fonseca it was "comfortable" with Rami Makhlouf as a customer, even though US Treasury sanctions against him were in effect at the time.
In May , HSBC announced that it would shut 24 of its 50 branches in India over the following several months, reducing its presence in the country to fourteen cities. On 20 March , the British newspaper The Guardian reported that hundreds of banks had helped launder KGB -related funds out of Russia , as uncovered by an investigation named Global Laundromat. HSBC has a significant presence in each of the world's major financial markets, with the Americas, Asia Pacific and Europe each representing around one third of its business.
In its technical management, however, HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. Although the consequences turned out to be small, the embarrassing effect on the group's image did not go unnoticed. HSBC entered Brunei in HSBC organises its customer-facing activities within four business groups: HSBC provides financial services to small, medium-sized and middle-market enterprises.
It provides investment banking and financing solutions for corporate and institutional clients, including corporate banking, investment banking, capital markets, trade services, payments and cash management, and leveraged acquisition finance. It provides services in equities, credit and rates, foreign exchange, money markets and securities services, in addition to asset management services.
Global Banking and Markets has offices in more than 60 countries and territories worldwide, and describes itself as "emerging markets-led and financing-focused". HSBC provides more than 54 million  customers worldwide with a full range of personal financial services, including current and savings accounts , mortgage loans , car financing, insurance, credit cards, loans, pensions and investments.
As a cost-saving measure HSBC is offshoring processing work to lower cost economies in order to reduce the cost of providing services in developed countries.
Chief Operating Officer Alan Jebson said in March that he would be very surprised if fewer than 25, people were working in the centres over the next three years: It also includes foreign exchange and money markets trading functionality.
The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking and global transaction banking divisions. HSBC Advance is the group's product aimed at working professionals. Protection plans and Financial Planning Services. A HSBC Advance customer enables the customer to open accounts in another country and transfer their credit history. HSBC Premier is the group's premium financial services product.
The exact benefits and qualification criteria vary depending on country. Customers have a dedicated Premier Relationship Manager, global hour access to call centres, free banking services and preferential rates. Following search warrants and raids beginning in January , in mid-March Argentina's main taxing authority accused HSBC of using fake receipts and dummy accounts to facilitate money laundering and tax evasion.
On 19 July , India investigated alleged violation of safety compliance, in which Indian employees were believed to be involved.
In both and , U. The identified problems included a once massive backlog of over 17, alerts identifying suspicious activity, failure to file timely suspicious activity reports with U. The fine was 40 million Swiss Francs. In December , Assistant U. Attorney General Lanny Breuer suggested that the U.
He stated, "Our goal here is not to bring HSBC down, it's not to cause a systemic effect on the economy, it's not for people to lose thousands of jobs. According to the report, "The U. A February article in Rolling Stone magazine, which was critical of what they regarded as the timid response by the U. In the report titled "In the Future There Will Be No Forests Left" produced by Global Witness , the bank is also being accused of supporting the seven largest Malaysian timber conglomerates which are responsible for rapid deforestation in the Malaysian state of Sarawak without any FSC certifications.
HSBC is contributing to the deforestation in Indonesia and subsequent hazardous impacts in the region by providing funds directly to one of the biggest companies that has been undertaking projects in the nation's peatland forests. The company has been exposed and lambasted throughout the last year for participating in the nefarious act of damaging the environment for profit.
Even though HSBC has denied the claims that they are sponsoring these environmentally irresponsible activities, Greenpeace has compiled multiple sources and researches to draw a link between the company and their customers. HSBC also held billions of dollars of assets for the Libyan Investment Authority , which was controlled by Colonel Muammar Gaddafi ; after Gaddafi's overthrow and assassination , the bank refused to reveal information about the funds, citing customer confidentiality.
In , HSBC refused to allow customers to withdraw large cash amounts without a third-party letter confirming what the money would be used for. It basically infantilises the customer. In a sense your money becomes pocket money and the bank becomes your parent.
The group announced in November that the HSBC brand and the hexagon symbol would be adopted as the unified brand in all the markets where HSBC operates, with the aim of enhancing recognition of the group and its values by customers, shareholders and staff throughout the world.
The hexagon symbol was originally adopted by the Hongkong and Shanghai Banking Corporation as its logo in It was developed from the bank's house flag , a white rectangle divided diagonally to produce a red hourglass shape. Like many other Hong Kong company flags that originated in the 19th century, and because of its founder's nationality, the design was based on the cross of Saint Andrew.
The logo was designed by Austrian graphic artist Henry Steiner. HSBC opted to sub-license the naming rights to all but one of the individual tournaments, while retaining its name sponsorship of the overall series and the Hong Kong Sevens. HSBC's other sponsorships are mainly in the area of education, health and the environment.
From Wikipedia, the free encyclopedia. London portal Companies portal. Archived from the original on 31 January Retrieved 4 September Retrieved 21 June Retrieved 15 March Retrieved 20 January Retrieved 9 March Retrieved 16 June Retrieved 14 October Retrieved 7 March Retrieved 7 December Retrieved on 6 December Retrieved 26 December Murky Cash Sheltered by Bank Secrecy".
International Consortium of Investigative Journalists. Retrieved 18 February Retrieved 17 February Retrieved 5 June Chinese for making money". January and received on the 1st. January as amended by Special Resolutions passed on the 20th. July and on the 18th. December , Re-registration of Memorandum and Articles, dated the December , and stamped by Companies House on the 21st.More...