HSBC For The Script

HOOK
Murder, cocaine. The enormous bank of HSBC is filled with blood

stains on a myriad of walls. Yet, with its highly attractive buildings
lay some corrupt executives, making it difficult to decipher their
real source of income.
In 2012, the FBI submitted this detailed investigation to US

Homeland Security, which described how HSBC is linked with
money laundering, drugs, and terrorist financing 1.
And when the US authorities read the entire investigation, they

could not believe their eyes.
From supporting one of the most violent groups in Mexico to even

becoming one of El Chapo’s preferred banks for money
laundering,
For the last five years, one of the most dangerous Mexican drug
lords2 has been confined to this maximum-security prison 3.
However, through HSBC, the business of firearms and drug

trafficking was rampant.
But how can an organization, which was considered by some the

world’s most valuable bank in 2008 run this illegal business?
Despite this, in 2012 HSBC Bank USA AKA HBUS operated more than
470 bank branches across the United States handling around
$210 billion worth of assets for approximately 4 million
Americans.
So, how was HSBC running this systematic empire of drug lords?
And why were US authorities afraid to shut them down?
1
https://web.archive.org/web/20160311202446/http://www.hsgac.senate.gov/download/
report-us-vulnerabilities-to-money-laundering-drugs-and-terrorist-financing-hsbc-case-
history
2
https://en.wikipedia.org/wiki/Joaqu%C3%ADn_%22El_Chapo%22_Guzm%C3%A1n
3
https://en.wikipedia.org/wiki/ADX_Florence
Chapter 1 - Born With A Curse
For many banks, the foundation is built on the need to provide

services to society and earn money from banking transactions.
But for the Hong Kong Shanghai Banking Corporation (HSBC), it
began with an illegal desire that became a curse for centuries.
After the First Opium War4 in 1842, the British Empire occupied
the Hong Kong region of China.
This was done to ensure they could continue exploiting the

Chinese population by selling the highly demanded opium drug in
the country.
However, there was one big issue. In Hong Kong, there was no
banking system to finance the growing trade in the region. As a
result, Scottish banker “Thomas Sutherland” raised $5 million
Hong Kong dollars and established HSBC.
Now the stage was set for the bank, as the consistent flow of
opium trade in the region allowed the British Empire to
significantly profit every year5. This, in turn, empowered HSBC to
become Asia’s largest bank. A few decades later, HSBC expanded
its offices to Bangkok, Manila, and Shanghai. Furthermore, it
aimed to expand into every major country worldwide.
But when it set its sights on the United States, something big
happened.
Chapter – 2 – The Passage For Blood

Money
In 1980, HSBC acquired a 51% stake in Marine Midland Bank in

New York6, which had several hundred branches across the city.
4
https://en.wikipedia.org/wiki/First_Opium_War#Aftermath
5
https://www.jstor.org/stable/3876660
6
https://en.wikipedia.org/wiki/HSBC_Bank_USA
By establishing a strong presence in the country, American
people considered HSBC a reliable bank. Nonetheless, their entire
perspective turned into suspicion when, over the next two
decades, HSBC went on a shopping spree of acquiring US banks.
For example, in 1997, HSBC acquired Rochester-based First

Federal Savings and Loan for $620 million. Then, in 1998, it
acquired First Commercial Bank of Philadelphia for $23.75 million.
And in 1999, it acquired Republic New York Bank for $10.3 billion.
But why was there such a rush to expand its footprint in America
when it had already acquired Marine Midland Bank of New York?
According to a 2010 survey conducted by Forrester research,
HSBC was also rated as the worst bank in the country by
customers. In fact, it was rated one of the least trusted banks in
America7, which created enormous suspicion about its existence.
So what was the use of those gigantic buildings if they couldn’t
serve customers properly?
Well, it may be argued that, these branches and acquisitions were

not made for American consumers but were created to secretly
profit from illegal activities. In other words, this brand and its
systematic picture acted as a secret gateway for Mexican drug
lords. And it all began when HBMX, a HSBC affiliate in Mexico, was
formed under its instant acquisition strategy.
According to this FBI report8, HSBC acquired a Mexican bank

named “Bital” in 2002. However, when the FBI conducted a pre-
purchase review, it was discovered that, despite operating in a
country with a high risk of money laundering and drug trafficking 9,
Bital was not complying with anti-money laundering rules.
7
https://archive.nytimes.com/bucks.blogs.nytimes.com/2010/02/03/the-least-trusted-banks-
in-america/
8
https://web.archive.org/web/20160311202446/http://www.hsgac.senate.gov/download/
report-us-vulnerabilities-to-money-laundering-drugs-and-terrorist-financing-hsbc-case-
history (Page 35)
9
https://www.investopedia.com/stock-analysis/2013/investing-news-for-jan-29-hsbcs-money-laundering-scandal-hbc-
scbff-ing-cs-rbs0129.aspx#:~:text=In%202012%2C%20U.S.%20federal%20regulators,Norte%20del%20Valle
%20drug%20cartels
Yet, contrary to its designation, Bital engaged in high risk
activities and even opened accounts for high risk clients including
Mexican Exchange Services “casas de cambios” and American
money Service businesses such as Casa de Cambio Puebla and
Sigue Corporation.
The level of suspicion reached an all-time high when, in 2002,

HSBC Group purchased Mexico’s fifth largest bank, Banco
Internacional, then part of Bital for $1.1 billion. As Bital had
approximately 6 million customers and a staff of 15,400 people,
this acquisition significantly increased their presence in Mexico.
Thus, HBMX also known as HSBC Mexico was formed, and a
gateway for Mexican drug lords was opened.
Chapter 3 – The Gateway To Mexican

Drug Lords
Known for illegal drug trafficking and money laundering, the

Government of Mexico is consistently combating drug cartels.
However, what they failed to realize is that one of their leading
banks was acting as a perfect gateway for these drug lords.
In a 2007 joint operation, the US Drug Enforcement

Administration and Mexican governments seized which at the
time was labelled the largest cash haul in a drug-related case in
history. The amount of cash recovered was $205 million, $17
million in Mexican pesos, and firearms that belonged to Chinese-
Mexican citizen and businessman “Genli Yay Gon.”
Now Gon was accused of importing and selling chemicals to drug

cartels, who then used them to manufacture methamphetamine,
an illegal drug sold in the United States. But the actual question
is, how did he manage to transfer millions of dollars of cash
without being red-flagged by the banks? Well, it turns out Gon
was a longtime client of HBMX. In fact, from 2003 to 2006, the
companies owned by Gon transferred $90 million through HBMX,
and 3 other major Mexican banks namely Banamex, BBV
Bancomer and Banco Mercantil Del Norte and multiple
currency exchanges.
Yet, in reality, none of these actions were conducted by HBMX.
The situation became more intense when, in 2008, Mexican 10
authorities informed the HBMX CEO that they possessed an audio
recording of Mexican drug kingpin "El Chapo," in which he claimed
HBMX was a perfect place for laundering cash.
Nonetheless, despite HSBC closing the suspected accounts, they

kept accepting dollar deposits from See-naloa and moved $1.1
billion from Sinaloa to the US branches. As a result, drug cartels
were making $60 billion a year by trafficking drugs in the United
States. Furthermore, half of that money was routed back to
Mexico11, which was used by cartels to pay off politicians, run their
businesses, and fuel violence to maintain their dominance.
Not to mention, in 2012, the State Department reported that drug

cartels were using Mexican and US financial institutions to launder
$39 billion each year.
But then;
Chapter – 4 - The Fine That Changes Nothing
In December 2012, HSBC was fined $1.9 billion for failing to

comply with US regulations and supporting drug cartels in money
laundering. In addition, several other financial institutions were
fined hundreds of millions of dollars due to illicit transactions. For
example, Credit Suisse settled for $536 million in 2009; Barclays
for $298 million; ING for $619 million; Standard Chartered for
$330 million; and Deutsche Bank paid $258 million in 2015
Nonetheless, the most astonishing part is, why was no employee

or HSBC executive arrested or imprisoned for committing one of
the most dangerous crimes of the century? The truth is, this $1.9
billion fine was all part of the game, because with $66 billion in
10
https://www.investopedia.com/stock-analysis/2013/investing-news-for-jan-29-hsbcs-
money-laundering-scandal-hbc-scbff-ing-cs-rbs0129.aspx#:~:text=In%202012%2C%20U.S.
%20federal%20regulators,Norte%20del%20Valle%20drug%20cartels
11
https://www.reuters.com/article/us-hsbc-probe/hsbc-to-pay-1-9-billion-u-s-fine-in-money-
laundering-case-idUSBRE8BA05M20121211/
HSBC revenue in 2023, the US government is also dependent on
its business.
Nevertheless, after HSBC received a fine of $85 million in 2021, it

seems the money laundering business is far from over.
So, what are your views about HSBC?
Tell us in the comment section below. Don't forget to subscribe to

our channel and press the like button if you enjoyed this video.
Thank you so much for watching.

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HOOK

Murder, cocaine. The enormous bank of HSBC is filled with blood

In 2012, the FBI submitted this detailed investigation to US

And when the US authorities read the entire investigation, they

From supporting one of the most violent groups in Mexico to even

However, through HSBC, the business of firearms and drug

But how can an organization, which was considered by some the

And why were US authorities afraid to shut them down?

For many banks, the foundation is built on the need to provide

This was done to ensure they could continue exploiting the

Chapter – 2 – The Passage For Blood

In 1980, HSBC acquired a 51% stake in Marine Midland Bank in

For example, in 1997, HSBC acquired Rochester-based First

Well, it may be argued that, these branches and acquisitions were

According to this FBI report8, HSBC acquired a Mexican bank

The level of suspicion reached an all-time high when, in 2002,

Chapter 3 – The Gateway To Mexican

Known for illegal drug trafficking and money laundering, the

In a 2007 joint operation, the US Drug Enforcement

Now Gon was accused of importing and selling chemicals to drug

Nonetheless, despite HSBC closing the suspected accounts, they

Not to mention, in 2012, the State Department reported that drug

In December 2012, HSBC was fined $1.9 billion for failing to

Nonetheless, the most astonishing part is, why was no employee

Nevertheless, after HSBC received a fine of $85 million in 2021, it

So, what are your views about HSBC?

Tell us in the comment section below. Don't forget to subscribe to

Thank you so much for watching.

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