Jersey’s HBME (part of HSBC) linked to alleged money-laundering – There are calls for tougher regulation of Jersey’s banks after a local-offshoot of HSBC was linked to allegations of money-laundering.

A major report by the US Senate accuses the global bank of a raft of wrongdoings.

US laws stop banks from doing business with certain countries including Iran.

However the report found the bank carried out thousands of transactions with Iran, and that HBME changed its records to remove

any reference to that country.

HSBC Middle East, known as HBME, is registered at HSBC House on the Esplanade in St Helier in Jersey.

Deputy Geoff Southern says this should act as a wake-up call for those who oversee the industry.

The US Senate’s findings have sent shockwaves through the financial world with HSBC saying it expects to be held accountable for

what went wrong.

The report says more work needs to be done to prove if any laws were actually broken.

HSBC Middle East is regulated by the Jersey Financial Services Commission who say they are aware of the Senate report but say

they can’t talk about specific cases.

Deputy Geoff Southern thinks that is not good enough.

“Jersey claims to be a well-regulated island but that the US Senate’s findings cast doubt on that, so much for regulation.”

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