HSBC Bank on the mat

HSBC Bank has been found guilty of aiding money laundering by regulatory authorities in the U.S. Now Arvind Kejriwal has accused the bank of facilitating opening of deposit accounts in foreign countries without complying with prudent guidelines and enabling money laundering. The charges are serious and are based on depositions by erstwhile account-holders to IT authorities.

Government's response is ridiculous. It says that the accusation is nothing new. The government is already investigating. Investigations will continue till cows come home and probably till the bank is wound up. HSBC's reaction is strange. "HSBC Bank in India notes certain allegations made on Friday. The bank cannot comment on the specific details of the allegations..., which relate to issues in the past." In any allegation, the issues will relate to the past only. Would any complainant foresee the future and then make allegations on future events?

RBI must be concerned about these developments. Its reputation for fair play and agile monitoring is under test.

Updated on 11th Nov.: It has already become the joke of the country that it is easier, sitting in Delhi, to open an account with HSBC Bank, Geneva than with SBI, Chandni Chowk. This does not speak well of HSBC Bank.