HSBC denies complicity in Egyptian clients' alleged crimes

Bank releases a statement explaining its involvement with Palm Hills and Talaat Moustafa Group, saying all deals were subject to due diligence

HSBC has hit back at claims it was complicit in the corrupt practices of two Egyptian companies for whom it provided financial services.
"[HSBC's] role was as a underwriter for the public offering of the first [Palm Hills] and an advisor for the offering of the second [Talaat Moustafa Group]," said Abdel Salam El-Anwar, chairman for HSBC-Egypt, in a statement released Tuesday morning.
Reports in the British press at the weekend accused the international bank of having provided assistance to real estate giants Palm Hills Development and the Talaat Moustafa Group, both currently under investigation for suspect land deals brokered by ex-officials close to Egypt's ousted president Mubarak.
HSBC claims all its dealings were subject to due diligence and no laws were broken. Its statement continues:
"The transactions covered in the newspapers were under the supervision and control of the Egyptian Financial Supervisory Authority in Cairo and [regulatory bodies in] London. They underwent all the criteria of control and governance, taking into account rules of disclosure and transparency and laws in force in Egypt."
Some in Egypt, however, argue that HSBC should have been aware of the main sources of its clients' wealth.
“The bank is responsible for ensuring that all major assets of its underwriting client were obtained through legal means,” said Tarek El-Marsafawy, senior associate at Zaki Hashem Law Firm.