FCA to Investigate UK Banks for ZA Money Laundering Scam

Financial Conduct AuthorityChancellor Philip Hammond has written an application to FCA or Financial Conduct Authority which is the main governing body in the United Kingdom to investigate into Lord Peter Hain’s allegations. Peter Hain is the former Cabinet Minister of UK.

Earlier this week, Mr Hain said that he possesses specific information from a whistle-blower in South Africa who said that banks in the United States were used for money laundering from South Africa. Peter Hain did not give names of the banks involved in the money laundering. But, according to some rumours, banks like HSBC Holdings Plc and Standard Chartered Bank Plc were engaged in it.

One of the spokespeople for the Treasury made the following statement:

We take allegations of financial misconduct very seriously and have passed Lord Hain’s letter on to the Financial Conduct Authority and relevant UK law enforcement agencies, including the National Crime Agency and Serious Fraud Office, to agree on the right action.

According to the money laundering scandals, the Gupta family in South Africa was embroiled in leveraging ties with President Jacob Zuma for manipulating the state contracts in their favour.

Both the President and the Gupta Family have denied all the accusations made in this respect. But Lord Hain is urging FCA to carry out a formal investigation to look into the money laundering angle where the Gupta Family have taken millions from South Africa and routed through Hong Kong and Dubai before finally moving the money in the United Kingdom. According to Lord Hain, around 400 million Pounds were transferred through the banks in the United Kingdom.

BBC Newsnight

The Gupta Family runs their company by the name Sahara Group that employs more than 10,000 people. Ajay Gupta and Atul Gupta are running the company which has business interests in several industries like mining, media, travel, energy and information technology.

South Africa has been in the news for this multi-million scandal involving several big corporations. In this scandal, two high profile names have come up namely the Gupta Family and President Jacob Zuma. The latest news of UK banks being involved in the scandal has brought a new twist in this investigation.

A Public Relations company in the UK called Bell Pottinger, and global consulting corporation KPMG is two other companies whose names are tarnished due to the money laundering scandal in South Africa. Companies like HSBC Bank and Standard Chartered Bank have not released their official statement related to the money laundering allegations.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.


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