Swiss private banking unit of HSBC Holdings has been accused by Belgium authorities over charges of tax fraud and money laundering.
The UK-based bank has been accused of helping diamond dealers and other wealthy clients hide cash and evade tax in Belgium.
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According to a statement by the Belgian authorities, "The Swiss bank is suspected of having knowingly eased and promoted fiscal fraud by making offshore companies available to certain privileged clients."
The statement added that the offshore companies were based in Panama and the Virgin Islands, with no economic activity and only intended to hide wealth of the bank’s clients.
The alleged activities are projected to cost Belgium hundreds of millions of euros in lost tax receipts.
HSBC said that its Swiss private bank "has been notified that it has been placed under formal investigation by a Belgian judge who, along with the French authorities, is examining whether the bank acted appropriately in the past in relation to certain clients who had Belgian tax-reporting requirements."
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By GlobalDataA spokeswoman for the prosecutors said that at present, charges have only been filed against the bank and certain employees and not its clients.
The latest blow comes days after the lender was slapped was a penalty of about £400m due to manipulation of foreign exchange markets, with five other banks.
