The bank has been in the eye of a media storm ever since the Swiss Leaks revelations
Keystone
In the wake of the Swiss Leaks allegations, the Geneva-based Interpol Foundation for a Safer World, an initiative of the global law enforcement agency Interpol, has asked HSBC CEO Stuart Gulliver to relinquish his position on its board.
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“Furthermore, with due regard to the presumption of innocence and pursuant to the Foundation’s Code of Good Governance and Internal Regulations, Interpol has proposed to the President of the Foundation that Mr Gulliver should temporarily suspend his membership with the board of the Foundation until the allegations are clarified,” an Interpol spokesperson told Swiss public television, RTS, on Monday.
The foundation also emphasised that it “an independent body which does not legally and administratively belong to Interpol”.
The Swiss Leaks revelations – which have accused the Swiss branch of British bank HSBC of being involved in helping criminal elements with tax evasion and money laundering – appear to have made Gulliver more of a liability than an asset on the foundation’s board, especially for one charged with tackling global crime.
The foundation was established by Interpol in 2013 to help implement Interpol’s vision of “Connecting Police for a Safer World”. The idea behind it was that a safer world is a collective responsibility, requiring a global alliance from governments, businesses and civil society.
One of the foundation’s main objectives is to ensure “clean and prosperous businesses which operate uncorrupted, where investors can nurture emerging economies in confidence, and consumers are empowered to make smart decisions”.
Gulliver had an important role in implementing this objective. He was nominated to be the co-leader for the foundation’s initiative “Protecting Banks and Financial Institutions” along with Jean-Marie Sander, chairman of Credit Agricole.
Other board members from the business world include chairman and CEO of Nissan and Renault Carlos Ghosn, chairman of Tata trusts Ratan Tata, and founder of the Abraaj Group Arif Naqvi.
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Under mounting pressure from the so-called Swissleaks revelations, HSBC boss apologised on Sunday for the role played by its Swiss branch in helping clients evade taxes eight years ago. The bank also claimed to have turned over a new leaf.
In an open letter addressed to HSBC customers, shareholders and colleagues, chief executive Stuart Gulliver apologised for the bank’s past actions. He claimed that the whole episode was a “painful experience” for the group.
“We must show we understand that the societies we serve expect more from us. We therefore offer our sincerest apologies,” stated the letter.
Sorry but…
However, the bank’s attempt to address the so-called Swissleaks revelations was far from a simple letter of apology. The bank stated that the media coverage of the data stolen by ex-employee Hervé Falciani must be put into context.
“Many of the people mentioned have no allegation of wrongdoing against them whatsoever but been named simply because they are well-known individuals,” the bank stated.
It also disputed the 100,000 clients figure mentioned in the media, claiming that the Swiss private banking arm only had 30,000 clients at its peak. In addition, HSBC questioned the accuracy of the stolen data suggesting that it could have been manipulated.
“It is unclear if the integrity of the data has been preserved, or even if the original data itself was complete and accurate. Recent allegations by a French law enforcement official in Nice, suggest that the data has been manipulated and could therefore contain material inaccuracies,” said another statement released by the bank.
Lesson learned?
HSBC also claimed that it no longer the same bank it was eight years ago.
“We have absolutely no appetite to do business with clients who are evading their taxes or who fail to meet our financial crime,” stated the letter.
The bank also released another statement showing the progress that has been made in overhauling the bank’s practices since 2007. It claims the latest figures show that it has “put compliance and tax transparency above profitability”. Measures stated include withdrawal from markets where due diligence is difficult and annual review of politically exposed persons.
The Swiss private bank has reduced the number of clients by almost a third, from 30,412 accounts in 2007 to 10,343 in 2014. It also slashed the amount of assets under management from $118.4 billion to $68 billion within the same period.
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