Swiss Prosecutors Raid HSBC Geneva Office

(RTTNews) - Swiss prosecutors searched offices of the Geneva subsidiary of U.K. banking giant HSBC Holdings plc (HSBC, HSBA.L) Wednesday as part of a probe into alleged money laundering.

Geneva Attorney General Olivier Jornot and another top prosecutor Yves Bertossa were conducting the search of HSBC Private Bank (Suisse) SA in Geneva, which is part of an investigation into aggravated money laundering, according the prosecutor's office. The investigation may be extended to individuals who are suspected of money laundering acts in the future.

"We have cooperated continuously with the Swiss authorities since first becoming aware of the data theft in 2008 and we continue to cooperate," HSBC said in a statement.

HSBC has come under scrutiny around the world after the International Consortium of Investigative Journalists earlier this month released details of leaked secret bank account files that revealed that the bank permitted clients to withdraw hoards of cash and also promoted schemes to enable wealthy clients avoid paying taxes.

The documents, leaked by a whistleblower in 2007, are said to contain details of more than 100,000 clients from around the world, covering accounts up to 2007 and holding more than $100 billion of assets. The data was later seized by French authorities and subsequently shared with numerous governments around the world in 2010.

HSBC reportedly handled secret accounts for international criminals, corrupt politicians and businessmen, as well as other high-risk individuals. It is alleged to have profited from doing business with arms dealers, traffickers in blood diamonds, and other international outlaws.

In a full-page advertisement published in several British newspapers over the weekend, HSBC Chief Executive Officer Stuart Gulliver offered "sincerest apologies" and said the Swiss private bank had been "completely overhauled."

Gulliver and Chairman Douglas Flint are due to testify before British lawmakers on the Swiss scandal on February 25.

HSBC shares closed up 0.45% at 605.50 pence in London.