HSBC, StanChart Shares Decline After Reports of Illicit Activity
September 21 2020 - 1:38AM
Dow Jones News
By Yifan Wang
Shares of HSBC Holdings PLC and Standard Chartered PLC dropped
in Asian trading Monday following media reports overnight that the
two banks and others moved suspected illicit funds despite red
flags about their origins.
The allegations, made by U.S. news outlet BuzzFeed News in
collaboration with global news organizations including the
International Consortium of Investigative Journalists, are based on
leaked documents relating to more than $2 trillion of transactions
mostly between 2011 and 2017.
The documents, known as suspicious activity reports, were filed
by banks and other financial firms with the U.S. Treasury
Department's Financial Crimes Enforcement Network, or FinCEN, about
transactions they believe could be part of financial crimes, such
as money laundering.
"We take our responsibility to fight financial crime extremely
seriously and have invested substantially in our compliance
programs," Standard Chartered told The Wall Street Journal. HSBC
didn't immediately respond to a request for comment.
HSBC shares fell as much as 4.4% to HK$29.60, their lowest level
since 1995. StanChart's stock lost up to 3.8% to HK$35.80, a
four-month low.
Shares of both lenders have been knocked lower in recent weeks
amid investor concerns about dim prospects for revenue growth given
deteriorating global economies.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
September 21, 2020 01:23 ET (05:23 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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