HSBC asked to appoint new president in Argentina

HSBC Argentina has been asked to appoint a new president and vice president within 24 hours by Argentina’s central bank for failing to prevent tax evasion and money laundering.

Last year, HSBC was charged for helping more than 4,000 clients evade taxes by hiding their money in secret Swiss bank accounts.

Argentine tax authorities claimed that HSBC had moved $3.5bn to offshore banks and ordered the bank to repatriate the same.

Reuters cited central bank as saying that HSBC president Gabriel Martino “had not directed the necessary measures to mitigate and adequately address the prevention of money laundering and the financing of terrorist activities.”

HSBC said: “HSBC Argentina continues to operate normally in the country, will continue to cooperate with the justice system and regulators.”

Argentina’s AFIP tax agency Ricardo Echegaray has welcomed the action taken by the central bank of Argentina saying that those who had moved funds abroad should own up to their deeds and pay the taxes owed.

The central bank can terminate the licenses of officials who legally represent commercial banks.

The European bank is said to have been facing probes in several countries blaming it helped clients evade taxes.