Concerns raised about UK banks' activities in South Africa

By agency reporter
October 20, 2017

Chancellor Philip Hammond has called on UK regulators and law enforcement to review concerns raised by Lord Peter Hain that HSBC and Standard Chartered banks may “have been conduits for the corrupt proceeds of money". Lord Hain spoke about his concerns in a speech in the House of Lords, and also wrote to the Chancellor.

The claims are related to a corruption inquiry into alleged links between the Gupta family and South African President Jacob Zuma, which has already had a significant impact on major UK firms including the public relations firm Bell Pottinger and KPMG.

Responding to the news, Murray Worthy, Senior Campaigner on Banks and Corruption at Global Witness said, "It's no surprise that HSBC and Standard Chartered are yet again suspected of handling dirty cash. The UK government admits that hundreds of billions of pounds are laundered through UK banks and their subsidiaries every year, yet usually the worst they face is a slap on the wrist and a small fine. 

"While the people of South Africa, a country struggling with vast inequality, are losing out, the senior bankers who should be responsible for preventing their banks handling corrupt cash are never held to account. Until senior executives are held personally responsible and banks face serious fines, they will continue to not take the corruption risks of the cash they handle seriously enough."

Global Witness’ 2015 report Banks and Dirty Money showed how major banks handled dirty money and why senior executives need to be held personally responsible when banks break the rules. 

*Read the report Banks and DIrty Money here

* Global Witness https://www.globalwitness.org/en-gb/

[Ekk/6]

Although the views expressed in this article do not necessarily represent the views of Ekklesia, the article may reflect Ekklesia's values. If you use Ekklesia's news briefings please consider making a donation to sponsor Ekklesia's work here.