LONDON (Alliance News) - HSBC Holdings PLC Thursday said that it has been placed under formal criminal investigation by the French magistrates due to the conduct of its Swiss private bank in 2006 and 2007 over allegations that the unit helped wealthy clients to evade tax.
According to HSBC, a A EUR1 billion bail was imposed.
"HSBC Holdings PLC believes the French magistrates' decision is without legal basis and the bail is unwarranted and excessive. It intends to appeal and will defend itself vigorously in any future proceedings," HSBC said in a statement.
In its annual report for 2014, HSBC said that there had been "unacceptable" practices within the Swiss private bank, but that it has since taken action to overhaul the business. The bank has said that the unit is now about one-third of the size it was in 2007 by customer numbers and countries served.
The allegations over HSBC's Swiss private bank were brought into focus in early February when a number of media outlets, including the Guardian, Le Monde and the Washington-based International Consortium of Investigative Journalists published reports on a leak of files containing details of bank accounts.
HSBC shares were up 2.4% at 600.90 pence on Thursday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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HSBC Holdings (HSBA)
