Trade minister Lord Green, the former CEO and chairman of HSBC, has been warned he has "serious questions" to answer over the bank's failure to stop money-laundering by drugs cartels and terrorists.
A report by the US senate earlier this week concluded that, between 2004 and 2010, HSBC subsidiaries moved billions of dollars around the financial system from countries such as Iran and Syria as well moving cash for Mexican drug cartel.
An email in the report detailed how Green was warned by HSBC's then head of compliance David Bagley about a potential breach to the rules in relation to sanctions in trading with Burma, the Guardian reports.
Chris Leslie, the shadow financial secretary to the Treasury, said: "Stephen Green, who was executive chairman of the bank when this took place and is now a trade minister in David Cameron's government, now has serious questions to answer about what he knew and when."
HSBC has already apologised for the failings while Bagley resigned on Tuesday during a Senate hearing on the issue.
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