FinCEN report: HSBC shares drop to lowest level since 1995

Lianna Brinded
·Head of Yahoo Finance UK
·1 min read
Protestors vandalize a HSBC branch in Hong Kong, Wednesday, Jan. 1, 2020. A huge crowd gathered in Hong Kong Wednesday for an annual New Year’s Day protest march as the monthslong pro-democracy movement extends into 2020. (AP Photo/Lee Jin-man)
Protestors vandalize a HSBC branch in Hong Kong on 1 January. Photo: Lee Jin-man/AP

HSBC (HSBA.L) shares on the Hong Kong stock exchange (0005.HK) dropped to its lowest level since 1995 after a report about several global banks allegedly moving large sums of allegedly illicit funds during nearly 20 years was published on Sunday.

HSBC shares in Hong Kong fell by over 4% at one point and is currently hovering under the $30 (£23.15) mark on Monday.

Chart: Yahoo Finance
Chart: Yahoo Finance

Shares in Standard Chartered (STAN.L) on the Hong Kong exchange (2888.HK) dropped by over 3% to the lowest since 25 May 2020. Both HSBC and Standard Chartered’s stock price performance helped drag down the Hang Seng Index (HSI) by -1.5%.

The report by BuzzFeed and other media outlets on Sunday, cited documents submitted by banks and other financial firms to the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN).

The documents — known as SARs — are not necessarily proof of wrongdoing. Some 2,100 of these were obtained by BuzzFeed News and shared with the International Consortium of Investigative Journalists (ICIJ) and other media organisations.

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READ MORE: 'FinCEN' documents reportedly show banks moved illicit funds - BuzzFeed, ICIJ

According to Buzzfeed’s report, the files contained information about more than $2tn worth of transactions between 1999 and 2017.

HSBC said in a statement: “All of the information provided by the ICIJ is historical.” The bank said as of 2012, “HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions.”

StanChart said in a statement: “We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes.”