Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      MVNO boom is reshaping South Africa’s mobile market

      12 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      South African law is failing gig-economy workers

      12 June 2025

      MultiChoice’s TV empire shrinks – but its ‘side hustles’ are holding strong

      12 June 2025

      MultiChoice is bleeding subscribers

      11 June 2025
    • World

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025

      Mark Zuckerberg has finally found a use for his metaverse

      30 May 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Current affairs » HSBC pulls plug on Gupta accounts

    HSBC pulls plug on Gupta accounts

    By Agency Staff20 November 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    HSBC building in Canary Wharf, London. Image c/o Barry Caruth

    HSBC Holdings is shutting accounts associated with the powerful Gupta family as it assesses its exposure to the scandal gripping South Africa.

    The bank is conducting a wide-ranging review of any possible involvement in suspicious transactions, with the assistance of external investigators, people with knowledge of the matter said.

    HSBC first closed accounts held by companies linked to the Gupta family in 2014 after internal compliance procedures picked up transactions that couldn’t be explained as legitimate business, the people said, asking not to be identified discussing a matter that isn’t public.

    Banks are required to report any transactions they suspect may be related to illicit activities.

    Any exposure that we had to the Guptas’ companies was inadvertent. For the past couple of years, we have been in the process of identifying what there is and shutting it down

    “Any exposure that we had to the Guptas’ companies was inadvertent,” HSBC said in an e-mailed statement on Monday. “For the past couple of years, we have been in the process of identifying what there is and shutting it down.”

    UK regulators last month said they are looking into whether HSBC and Standard Chartered facilitated money laundering as a result of possible ties to the Gupta family after a British politician warned illicit funds may have passed through the United Arab Emirates and Hong Kong, where the banks have had large footprints.

    The scandal around the Indian-born Gupta brothers, their business connections with the family of President Jacob Zuma and their alleged ability to direct state tenders have rocked South Africa’s government. Zuma and the Guptas have consistently denied any wrongdoing. Software giant SAP, accountancy KPMG, and management consultants McKinsey & Co are among the major international brands that have been drawn into the saga because of their dealings with entities linked to the Guptas.

    Last year, Pravin Gordhan, South Africa’s finance minister at the time, said in a court affidavit that since 2012 banks had reported R6.8bn in suspicious payments made by the three Gupta brothers, companies they control and other individuals with the same surname. Information on the Guptas’ connections has accumulated over the years, with a major leak of their data in June revealing the depth of their dealings with state and private companies.

    ‘Never interested’

    The bank’s senior management is aware of the issue and is dealing with the matter, the people said.

    “HSBC is in an entirely different position from some of the other companies which were intentionally seeking to do business with the Guptas and the Guptas’ companies,” the bank said. “HSBC was never interested in doing business with the Guptas’ companies.”

    Peter Hain, a Labour Party member of the house of lords, asked UK authorities in a speech in parliament to probe an unnamed British bank for “possible criminal complicity” after it allegedly failed to take action on internal concerns about suspicious transactions related to the Guptas. HSBC is the bank, according to two people with knowledge of the allegations.

    In December 2012, HSBC agreed to pay a US$1.9bn fine to settle US allegations it had facilitated money laundering and sanctions evasion by clients. It has also been under the supervision of an external monitor since then as part of the settlement. The bank says it has improved its in-house controls as was required under the agreement, including building a team of 6 000 financial crimes specialists.  — Reported by Franz Wild and Ambereen Choudhury, (c) 2017 Bloomberg LP



    HSBC KPMG Pravin Gordhan
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSpectrum impasse damaging SA’s growth prospects
    Next Article Naspers hits R4 000/share

    Related Posts

    Could the iPhone soon be cheaper in South Africa than America?

    8 April 2025

    Trump tariff threat: what it means for South Africa’s tech sector

    18 February 2025

    South Africa’s EV subsidy and tax rebate plan, and what it really means

    21 October 2024
    Company News

    Building a cyber-resilient culture from the boardroom to the front lines

    12 June 2025

    How South Africa’s municipalities are finally getting smart

    12 June 2025

    Ransomware roulette: pay up or power through?

    11 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.