HSBC Monitor Flagged Payments Linking Huawei With Iran

  • Bank had monitor overseeing its systems after 2012 settlement
  • Canada arrested Huawei’s CFO on Saturday in U.S. investigation
Photographer: Qilai Shen/Bloomberg
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A monitor assigned to HSBC Holdings Plc told federal prosecutors about suspicious transactions linking Huawei Technologies Co. with Iran, adding evidence to a U.S. investigation that led to the arrest of the Chinese company’s finance chief, according to a person familiar with the matter.

The monitor, Exiger, was enlisted by the Justice Department to oversee HSBC’s compliance efforts in 2013 following a $1.9 billion deferred-prosecution agreement with the bank that exposed a range of weaknesses in its internal controls. The London-based lender isn’t under investigation in this matter, another person said.