Not too big to fail in the Cayman Islands...
The Cayman Islands Monetary Authority has officially revoked the banking license of HSBC S.A. (Cayman Islands Branch).
In a press release dated Friday, 1 March, the authority said that since last July the said bank had been under investigation to establish whether they had breached any local laws and regulations.
“In the Decision notice of 27 February, the CIMA revoked the Category B Banking license."
Following Section 18 (1) ( i) of the Banks and Trust Companies Law (2009 Revision), CIMA concluded that HSBC was conducting business in a manner detrimental to the public interest, the interest of depositors or of the beneficiaries of any trust or other creditors and that the direction and management of its businesses has not been conducted in a fit and proper manner,” read the announcement.
In September of 2012, then premier McKeeeva Bush made known that "the local operations of HSBC would be investigated, in the wake of the issues surrounding HSBC Mexico, which was the subject of a US regulators investigation for laundering funds of sanctioned nations including Iran and Sudan."
“Needless to say, as a government we are extremely concerned about the potential impact this could have on our jurisdiction. The actions or lack thereof by the bank officials and alleged misuse of the Cayman entity can undermine the jurisdiction’s hard work and accomplishments in the AML (anti-money laundering) regime,” Bush said in the statement released last year.
A bank that breaks money laundering laws is shut down. What a novel idea.