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HSBC accused by Argentina of tax evasion and money laundering

Tuesday, March 19th 2013 - 06:19 UTC
Full article 26 comments
HSBC is the seventh-largest bank by deposits in Argentina, according to the central bank website HSBC is the seventh-largest bank by deposits in Argentina, according to the central bank website

Argentina’s tax agency formally accused the local unit of British banking giant HSBC Holdings Plc. of conspiracy to hide bank accounts, thereby helping private companies evade tax payments and launder money.

During a press on Monday Argentina’s tax chief Ricardo Echegaray, reported that the London-based Hongkong and Shanghai Banking Corporation (HSBC) has been involved in money laundering operations for a total of 392 million pesos, as well in tax evasion manoeuvres for 224 million pesos, all within a period of six months.

The head of the AFIP tax agency, explained that after performing a series of raids, the agency detected “false invoices used for money laundering“ and ”fraudulent manoeuvres which were performed to evade taxes for tens of millions of pesos.”

”An example is the behaviour of the HSBC Bank that provided deposit-collection services to companies involved in the use of false invoices for nonexistent operations. The deposits were made in an account associated with a generic CUIT number (tax registry number), which was exempt from taxes to bank accounts debits and credits, and whose movements were deliberately hidden”, Echegaray told reporters.

On February first Etchegaray announced that AFIP would file a “fiscal fraud” lawsuit against a very important international bank which was not then identified or did they specify the type of evasion detected.

At that time, Echegaray had limited himself to saying that the AFIP had detected a “situation of fiscal fraud” and that during January a judge ordered an investigation of the banking entity, allowing it to be searched and its records examined.

“We believe that these illegal acts involve not only the bank’s credit and debit tax records but also VAT value-added tax,” said Echegaray.

Federal Judge Javier Lopez Biscayart of the tax crimes court in Buenos Aires has received the agency’s file against the bank, Echegaray said.

“The allegations made by regulators in Argentina are of great concern,” Lyssette Bravo, an HSBC spokeswoman for Latin America, said in an e-mailed response. “We are committed to working cooperatively with authorities to ensure a thorough review and appropriate resolution of the matter.”

 

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  • LEPRecon

    Interpret this from Kirchernite speech to mean:

    You stopped us (the government) from raiding all these bank account and appropriating (stealing) all of the US dollars.

    Mar 19th, 2013 - 07:38 am 0
  • mastershakejb

    I wouldn't be surprised if HSBC performed some accounting tricks.....but only because they HAVE to in Argentine economic climate. It's illegal/impossible to get dollars, inflation is outta control, etc etc, so to be able to even operate/not bleed money, and to stay competitive, one would HAVE to perform accounting tricks in Argentina.
    HSBC.......and EVERY other foreign company should really pack up their things now while they still can and get the hell out, before Cristina tries to claim their assets via lawsuits or nationalization.

    Mar 19th, 2013 - 07:59 am 0
  • Teaboy2

    To be honest, i wouldn't be surprised if the investigation itself was baseless and the charges made up on false evidence. Given CFK's need for dollars or any money for that matter, what better target than a bank, and a British one at that.

    But then this could come back to hit her very hard, as HSBC could turn round and say to hell with Argentina and pull out of the country.

    Mar 19th, 2013 - 08:44 am 0
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