BRUSSELS, Feb 11 (Reuters) - HSBC has offered toco-operate with Belgian authorities and as a result a judge haswithdrawn his threat to issue international arrest warrantsagainst senior directors of its Swiss private banking arm,Brussels prosecutors said on Wednesday.
The Belgian judge has charged the HSBC unit with tax fraudand money laundering, accusing it of offering diamond dealersand other wealthy clients ways of hiding cash and evading tax.
Earlier this week, prosecutors said the judge wasconsidering issuing international arrest warrants because thebank was not giving information voluntarily.
However on Wednesday they said the situation had changed.
"Based on the fact that the bank has made a proposal tooffer co-operation ... such measures are no longer envisaged,with the people summoned responding to those summons," astatement by prosecutors said.
HSBC this week admitted failings in compliance and controlsat its Swiss private bank after media reports said it helpedwealthy customers conceal millions of dollars of assets in aperiod up to 2007.
It said it had transformed the unit in recent years toprevent it being used to evade taxes or launder money.
(Reporting By Philip Blenkinsop; Editing by Pravin Char)