A US appeals court earlier this week ruled that HSBC (NYSE: HSBC) cannot be held liable for damages caused to families of two victims killed in an Al-Qaeda bombing attack, despite the bank circumventing US sanctions to provide financial services to Iranian and Saudi Arabian intermediary banks.
As first reported by Reuters, a 2-1 decision by the D.C. Circuit Court of Appeals found the families of Dane Paresi and Jeremy Wise did not prove that HSBC knowingly aided and abetted Al-Qaeda in terrorism activities, even though the bank had dealings with Iran’s Bank Melli and Bank Saderat, and Saudi Arabian-based Al Raajhi Bank, which then subsequently had ties to various terrorist groups. “A lengthy financial relationship does not terrorism assistance make,” said Judge Neomi Rao in behalf of the majority.
American contractors Paresi and Wise were among nine others killed when Al-Qaeda member Humam Khalil al-Balawi detonated a suicide bomb at a CIA base in Afghanistan back in 2009. The judge also ruled in favour of dismissing claims against HSBC’s foreign entities because the court lacked jurisdiction. The latest decision comes after the Federal Reserve cancelled a long-standing enforcement order against HSBC last month, that was initially imposed when the bank paid a $1.92 billion fine for allegedly violating sanctions and anti-money laundering laws.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
