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HSBC Says Swiss Bank Tax Probe Could Cost More Than $1.5 Billion

  • Bank fined 300 million euros by French authorities last year
  • The firm had related provisions of $604 million at end of year
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HSBC Finance Director Iain Mackay discusses the bank’s earnings and performance.(Source: Bloomberg)

HSBC Holdings Plc said it could face penalties exceeding $1.5 billion stemming from multiple investigations into claims that its Swiss private bank unit helped clients evade paying taxes.

Authorities in the U.S., Belgium, Argentina, India, Spain and elsewhere are probing allegations of tax evasion or tax fraud, money laundering and unlawful cross-border banking solicitation at the Swiss private bank, HSBC disclosed in its annual report Tuesday. The bank paid the French government 300 million euros ($370 million) in November to settle allegations that it helped clients hide assets from local tax authorities.