 "HSBC whistle-blower to be tried in Switzerland on Nov 2")
HSBC whistle-blower Hervé Falciani, who helped India in a probe into unaccounted money abroad, will be tried in Switzerland in absentia for industrial espionage and breach of banking secrecy. The trial has been re-scheduled to open on November 2, after Falciani failed to appear at the opening of the trial in the Federal Criminal Court in Bellinzona, near the Swiss-Italian border, on Monday.
Falciani’s data leak from HSBC Private Bank in Geneva, seven years ago, continues to create havoc around the world. The biggest bank data breach ever, it set off investigations across countries, including India.
Though Switzerland has an Interpol warrant against him, Falciani cannot be extradited from France and Italy, as he holds dual citizenship of these countries. Also, Spain has refused to extradite him. The whistle-blower says he doubts the legitimacy of the Swiss justice system.
Falciani’s India connection
So far, the only considerable amount the government has announced from its black money probe is Rs 6,500 crore. This was recovered during the HSBC probe, which was based on Falciani’s data, part of which was first given to India by French authorities in 2011.
A representative of a special investigation team set up on the issue had travelled to meet Falciani in Paris on December 15-16, 2014, after he declared India had only one per cent of the information it could use for an HSBC probe. Following his revelations, India was able to secure additional data from France.
Sources in the Indian tax department confirmed India had asked for missing bits of information in the HSBC probes. They, however, declined to give further details.
Soon after this additional information was acquired, Switzerland started publishing the names of Indian clients in its official gazette. It seems the additional data helped India complete the formalities Switzerland required for the bank to confirm and furnish information on accounts.
An agreement was signed between Falciani and Indian authorities on January 21 this year, in which he was asked to provide India specific information. The whistle-blower said he was willing to provide further help, adding there was more to be done in the black money probe. But he says he needs help from Indian judges to proceed further.
The banking secrecy trial
Marc Henzelin, the court-appointed lawyer representing Hervé Falciani, told Business Standard his client was being tried under “archaic laws”, as Switzerland claimed it would end banking secrecy in two years. He said it was a “paradox” that a bank (HSBC) that shielded drug mafia, terrorists and tax evaders didn’t have to face criminal proceedings in Switzerland. “This means if my client had paid millions of francs, he would not have had to face this trial?” asked Henzelin, referring to the 40 million Swiss francs HSBC paid for the closure of the case of “serious money laundering” in Swiss courts.
The whistle-blower’s lawyer also pointed out a US Department of Justice report published in June had underlined HSBC’s methods exposed it to serious money laundering and risks of sanctions and, if revealed, could serve as a road map by criminal actors.
HSBC’s lawyer, Laurent Moreillon, said Falciani could have availed of safe passage and should attend the hearing in November so that “justice can be done in an area that could affect any bank”.
In 2011, Swiss financial market supervisory authority, FINMA, had concluded there were deficiencies in the bank’s internal organisation and information technology controls that resulted in a serious breach of the bank’s licensing requirements.
Hervé Falciani is expected to appear at a press conference on the French side of the Franco-Swiss border three days before the hearing starts at the Bellinzona Federal Criminal Court.
Falciani’s data leak from HSBC Private Bank in Geneva, seven years ago, continues to create havoc around the world. The biggest bank data breach ever, it set off investigations across countries, including India.
Though Switzerland has an Interpol warrant against him, Falciani cannot be extradited from France and Italy, as he holds dual citizenship of these countries. Also, Spain has refused to extradite him. The whistle-blower says he doubts the legitimacy of the Swiss justice system.
Falciani’s India connection
So far, the only considerable amount the government has announced from its black money probe is Rs 6,500 crore. This was recovered during the HSBC probe, which was based on Falciani’s data, part of which was first given to India by French authorities in 2011.
A representative of a special investigation team set up on the issue had travelled to meet Falciani in Paris on December 15-16, 2014, after he declared India had only one per cent of the information it could use for an HSBC probe. Following his revelations, India was able to secure additional data from France.
Sources in the Indian tax department confirmed India had asked for missing bits of information in the HSBC probes. They, however, declined to give further details.
Soon after this additional information was acquired, Switzerland started publishing the names of Indian clients in its official gazette. It seems the additional data helped India complete the formalities Switzerland required for the bank to confirm and furnish information on accounts.
An agreement was signed between Falciani and Indian authorities on January 21 this year, in which he was asked to provide India specific information. The whistle-blower said he was willing to provide further help, adding there was more to be done in the black money probe. But he says he needs help from Indian judges to proceed further.
The banking secrecy trial
Marc Henzelin, the court-appointed lawyer representing Hervé Falciani, told Business Standard his client was being tried under “archaic laws”, as Switzerland claimed it would end banking secrecy in two years. He said it was a “paradox” that a bank (HSBC) that shielded drug mafia, terrorists and tax evaders didn’t have to face criminal proceedings in Switzerland. “This means if my client had paid millions of francs, he would not have had to face this trial?” asked Henzelin, referring to the 40 million Swiss francs HSBC paid for the closure of the case of “serious money laundering” in Swiss courts.
The whistle-blower’s lawyer also pointed out a US Department of Justice report published in June had underlined HSBC’s methods exposed it to serious money laundering and risks of sanctions and, if revealed, could serve as a road map by criminal actors.
HSBC’s lawyer, Laurent Moreillon, said Falciani could have availed of safe passage and should attend the hearing in November so that “justice can be done in an area that could affect any bank”.
In 2011, Swiss financial market supervisory authority, FINMA, had concluded there were deficiencies in the bank’s internal organisation and information technology controls that resulted in a serious breach of the bank’s licensing requirements.
Hervé Falciani is expected to appear at a press conference on the French side of the Franco-Swiss border three days before the hearing starts at the Bellinzona Federal Criminal Court.
