U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History, Hearing Before the Permanent Subcommittee on Investigations of the Committee on Homeland Security and Governmental Affairs, United States Senate, One Hundred Twelfth Congress, Second Session, Volume 2 of 2, July 17, 2012 [open pdf - 30MB]
This document contains additional materials from the hearing titled "U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History". From the opening statement of Carl Levin: "Today's hearing will examine the money-laundering, drug-trafficking, and terrorist-financing risks created in the United States when a global bank uses its U.S. affiliate to provide U.S. dollars and access to the U.S. financial system to a network of high-risk affiliates, high-risk correspondent banks, and high-risk clients. Most international banks have a U.S. affiliate. They use it in part to compete for U.S. clients and business, but also to provide themselves with access to the U.S. financial system. Global banks want access to U.S. dollars because they are accepted internationally, they are the leading trade currency, and they hold their value better than any other currency. They want access to U.S. wire transfer systems because they move money across international lines quickly, securely, and to the farthest corners of the Earth. They want to clear U.S. dollar monetary instruments like travelers checks, bank checks, and money orders. And they want the safety, efficiency, and reliability that are the hallmarks of U.S. banking. The problem here is that some international banks abuse their U.S. access. Some allow affiliates operating in countries with severe money-laundering, drug-trafficking, or terrorist-financing threats to open up U.S. dollar accounts without establishing safeguards at their U.S. affiliate." Statements, letters, and materials submitted for the record include those of the following: Carl Levin, Tom Coburn, David S. Cohen, Leigh H. Winchell, David B. Bagley, Paul Thurston, Michael Gallagher, Chiu Hon Lok, Irene Dorner, Stuart A. Levey, Thomas J. Curry, Grace E. Dailey, and Daniel P. Stipano.
S. Hrg. 112-597; Senate Hearing 112-597
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