Argentina’s central bank revoked the licenses of two top executives at HSBC’s local unit, including the chief executive officer, arguing they had failed to prevent clients from laundering funds and evading taxes.
Bloomberg News reports that Gabriel Martino, the bank’s CEO, and Miguel Angel Estevez, a director, didn’t adequately manage risks at the institution or implement proper internal and external controls, the central bank said. HSBC must inform authorities of its plans to replace them within 24 hours.
Martino 'didn’t direct the necessary actions to mitigate and address adequately the risk of prevention of money laundering and financing of terrorism', the central bank said in the statement.
HSBC allegedly helped clients hide assets abroad to avoid paying taxes through shell companies and using legal advisers and lawyers, according to a government presentation released to the media in November.
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