The Senate Judiciary Committee has delayed a vote on the nomination of Loretta Lynch to become US attorney general amid questions about how she handled the money laundering prosecution of British banking giant HSBC in 2012.
In a new report, the Centre For Public Integrity said the delay comes after revelations that the Swiss arm of the bank may have helped individuals and companies worldwide hife their money from from tax authorities. SwissLeaks named Tancred Tabone as being one Maltese person who had about €800,000 in a Swiss Bank account. Swiss Leaks also said that Maltese people had some €650,000 stashed away in Switzerland. Opposition leader Simon Busuttil has since said that it would be completely unacceptable if Maltese politicians, or those holding public office, were have to evaded tax by depositing money in accounts there.
Sen. David Vitter, was among the senators who asked that the committee vote on Lynch's nomination be delayed at least two weeks while lawmakers ask her additional questions. Vitter said he was concerned about the 2012 HSBC settlement.
"The investigation found that HSBC had violated many anti-money laundering statutes," Vitter said during today's committee meeting. "The settlement was a fine - a significant fine, but a fine. No criminal action, nothing more serious."
The revelations have raised questions as to why the Justice Department did not charge the bank with any tax-related infractions and has also drawn additional scrutiny to the 2012 settlement spearheaded by Lynch, who was US attorney in Brooklyn.
"It's very reasonable and incumbent on us, in fact, to get the details of this settlement," Vitter said. "I'm certainly working on that."
The bank was charged in 2012 with helping drug dealers launder money and with illegally completing transactions for clients in Iran, Libya, Syria and other countries under US economic sanctions.
On the same day, the bank entered into a deferred prosecution agreement in which it forfeited $1.26 billion and paid another $665 million in penalties. The company also replaced all of its senior management at that time, and has been working under a court-appointed monitor. The agreement could be terminated if the bank commits further crimes.
No HSBC executives were criminally charged.
Lynch said the punishment at that time was considered "significant, and in some respect extraordinary."
Lynch added that she "carefully considered sufficient admissible evidence to prosecute an individual and whether such a prosecution otherwise would have been consistent with the principles of federal prosecution."