Argentina demands new local HSBC boss

HSBC has been ordered to find a new boss for its Argentine arm after being accused of failing to prevent tax evasion and money laundering.

Argentina’s central bank said HSBC Argentina’s president and chief executive, Gabriel Martino, ‘has not directed the necessary measures to adequately address the prevention of money laundering’.

In November, Argentine authorities charged HSBC with helping more than 4,000 clients evade taxes by hiding money in Swiss bank accounts. On Tuesday evening it emerged that Argentina’s central bank had given HSBC (down 0.2p to 498.8p) 24 hours to replace Martino.

HSBC rejected the charges and said: ‘HSBC complies with the laws and regulations that govern its activity in [Argentina] and will continue co-operating with the Justice Department and regulators.’

Ricardo Echegaray, boss of Argentina’s tax agency backed the demand from the central bank, adding that Martino and HSBC ‘looked to cheat Argentina’.