HSBC is a well-known bank, isn’t it? Well, it’s about time you got to know about its dark side. It’s going to be something very interesting which you would have never ever expected.

We all have heard of the world’s local bank, HSBC. As of 2020, it has an estimated net worth of $96.16 billion and is Europe’s biggest bank. But, did you know in 2012, this bank had to pay a $1.9 billion financial settlement? Why? Let’s keep reading to learn what they were getting charged for. 

HSBC was found to be participating in money laundering of $881 million through the sale of illegal drugs; they were tied to the Mexican Sinaloa Cartel which is the most powerful drug gang in the world and also the Colombian the Norte del Valle Cartel. While HSBC admitted to laundering money to the cartels and violating banking laws, the Department of Justice decided not to pursue criminal charges but rather move forward with a financial settlement. I believe it is important to note that HSBC’s fine of $1.9 billion was equivalent to about five weeks of the bank’s income. 

Till now, Mexico’s drug ordeal has taken 100,000 lives and is associated with around 20,000 missing cases. HSBC has added to this angst by acting as the support for the cartels’ financial services. Most of the money came to the bank from a small exchange house called Casa de Cambio Puebla which was discovered when the exchange house was under investigation by Mexican and US authorities after HSBC was caught.

The worst part of all this is how boldly the transactions took place; even an amateur could spot them from miles away. The Assistant US Attorney General claimed that drug dealers freely walked into HSBC’S Mexican branches and would deposit thousands of dollars in cash to an account in a day. What this all means is that all this took place in broad daylight, but HSBC decided to turn a blind eye

After paying the fine of $1.9 billion, HSBC then announced that they would partially reduce bonus compensation for its most senior executives during their five years of deferred prosecution agreement. Besides that, Paul Thurston who was in charge of HSBC Mexico was promoted to “Head of Global Retail” whilst receiving a multi- million-dollar salary and Stephen Green, the Chief Executive, who throughout the bank’s involvement with the cartels, became appointed to the British Government. Scott-free sounds like an understatement right about now, doesn’t it?

Now, almost everybody will have the same question on their mind: why was this bank not criminally prosecuted and why were no bankers arrested? Here’s the witless answer that was never explicitly stated but is the most likely reason. The government was more concerned about an unstable financial system if HSBC were to be prosecuted. Not only did they absolutely mock the Mexican drug war and the lives lost during it by not prosecuting HSBC, but they have also clearly disrespected millions of individuals. These people had to face jail time and in extreme cases, a life sentence, for possessing just a stem of marijuana which just proved that there will never be a fair justice system. After all, a multinational company will receive more sympathy than a junkie in need of medical assistance. This situation has only proven pure cowardice and corruption by what is supposed to be a system making fair judgments.