HSBC sued for laundering cartel money

HSBC comes under pressure again amid a new lawsuit for supporting terrorist organisations

 
HSBC is being sued in a new lawsuit for allegedly supporting terrorist organisations 

The families of US victims murdered by Mexican cartels are suing HSBC for helping the illegal enterprise to operate. The lawsuit claims that by knowingly laundering billions, the bank should be held responsible for a series of deaths in 2010 and 2011.

Scrutiny is once again abound on HSBC, not long after it paid $1.9bn for a criminal investigation in 2012, during which it was accused of laundering over $880m for drug cartels.

The bank has stated that it will fight the lawsuit, which was filed on February 09 in a Texan Federal Court.

The lawsuit argues that the bank should be held accountable under the Anti-Terrorism Act, which was amended following the 9/11 terrorist US attacks to enable victims to request compensation from entities that have provided material assistance to terrorist groups.

Using documents that were presented in the case made by the US Senate in 2012, the lawsuit highlights that the bank disregarded its internal regulations and was even referred to by one cartel kingpin as “the place to launder money”, according to Bloomberg.

Pressure on HSBC continues to escalate as the London-headquartered bank is also being sued by the families of US soldiers injured and killed in Iraq, amid accusations that it helped to finance militant groups such as Hezbollah. Again, the bank has denied any wrongdoing.

Given HSBC’s track record of money laundering on behalf of illegal entities, it would seem that it is only a matter of time before the bank faces another large penalty, and if the damning lawsuits continue at this current rate, it may finally buckle under.