A U.S. Senate panel is investigating HSBC for its involvement in a money-laundering scheme, Reuters reports this morning.
The subjects of the inquiry are not known, but Reuters says the case is linked to a West Virginia pain-management doctor who in 2008 was charged with 169 counts of fraud and tax evasion and was accused of laundering money between HSBC accounts in Canada, Hong Kong and the Philippines. The suspect, Barton J. Adams, pleaded not guilty.
The inquiry is part of “a long-running U.S. effort to halt shadowy money flows through global banks.” Reuters notes that the London-based bank has frequently popped up on American regulators’ radars for weak money-laundering controls and allegedly enabling healthcare fraud and tax evasion.
Last summer, the bank came under investigation for handling money belonging to Mexican drug cartels.
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