Bank Sued Over Cartel Money Laundering - WhoWhatWhy - 0 views
whowhatwhy.org/...nks-over-drug-money-laundering
banksters HSBC money-laundering drug-cartels terrorism litigation
![](/images/link.gif)
-
While bankers can probably get their highs any number of ways, the Mexican drug cartels need financial institutions to clean their dirty money. And, it seems, there is no better bank for that than London-based HSBC, which is one of the world’s largest. In the first six months of last year, it reported a pre-tax profit of $13.6 billion.According to a lawsuit filed against HSBC earlier this month, it earned some of those profits by allowing the drug cartels to cycle billions of dollars through it.“From 2004 through at least 2008, HSBC Mexico accepted over $16.1 billion in cash deposits from customers throughout Mexico. This amount eclipsed the amount of USD cash deposits at financial institutions with market shares multiple times greater than HSBC Mexico’s,” the lawsuit alleges.
-
HSBC is no stranger to accusations of helping the cartels. In 2012, the bank paid $1.9 billion as part of an agreement with the United States and admitted that it had failed to establish an effective anti-money laundering (AML) program. In spite of having to pay such a massive penalty, no HSBC employees went to jail.
-
Even though the new lawsuit addresses an old problem, the legal action is unique for several reasons. It was brought on behalf of the families of several Americans killed by the Mexican cartels. The action seeks redress under a 1996 law (amended following the 9/11 attacks) that allows victims of terrorism to seek compensation from any organization that supported the perpetrators of such crimes.
- ...2 more annotations...
-
This is the first attempt to apply the 1996 anti-terrorism law to the actions of the Mexican drug cartels. “The gruesome attacks on the innocent American victims on foreign soil were unquestionably acts of international terrorism,” said attorney Richard M. Elias, who represents the families.The lawsuit asserts that cartels now function as “paramilitary organizations” and have become one of the top threats to US national security.
-
The suit alleges that HSBC’s actions, or inactions, amounted to knowingly providing“continuous and systematic material support to the cartels and their acts of terrorism by laundering billions of dollars for them. As a proximate result of HSBC’s material support to the Mexican drug cartels, numerous lives, including those of the plaintiffs, have been destroyed.”