Finance Intelligence Unit begins probe into HSBC's India operations

The Finance Ministry's Finance Intelligence Unit (FIU) has begun a probe into HSBC's India operations after a report of the US agency alleged that India was exposed to terror financing and money laundering due to the deficiencies in the quality of work done by lender's Indian workforce.

The US Senate's Permanent Subcommittee on Investigations had earlier revealed that HSBC has exposed American and Indian financial systems to various terror financing, money laundering and drug trafficking activities due to poor risk control systems at the bank.

The US agency had also said that Indian staff has maintained poor anti-money laundering controls resulting into a tainted Saudi bank, Al Rajhi Bank, withdrawing money in Indian rupees.

Media reports said that FIU will collect and analyze all the Suspicious Transaction Reports and Cash Transaction Reports that the bank has made in all these years.

Read more about: hsbc
Story first published: Tuesday, July 24, 2012, 0:34 [IST]
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