Sunday ET: Terror link: RBI may examine HSBC books

MUMBAI: Reserve Bank could look at the books of HSBC, as reports from the US senate, accusing the global lender of engaging in money laundering activities like lending to terror entities came to the fore.

“Otherwise also we are examining,” said KC Chakrabarty, deputy governor, RBI. “Discussion in the senate cannot be the source for investigation. If we've something, in documents, if it comes to us in writing from the Federal Reserve, we will look into it.”

According to the Senate sub-committee report, the branch has supplied a billion dollars to Saudi Arabian bank, Al Rajhi, though the Saudi Arabian bank’s founder had been an early benefactor of Al Qaeda.

An independent audit has found the bank has let through 25,000 questionable payments involving Iran between 2001 and 2007. The bank has also been used by Mexican drug cartels, according to the report.