The banking group has been hit by an order in Argentina to remove two of its most senior executives in the country.

The licences of two senior executives at HSBC’s unit in Argentina – including that of the CEO – have been revoked by the country’s central bank, arguing that they have failed to stop clients from money laundering and evading tax, media reports said.

Gabriel Martino, the bank’s CEO, and Miguel Angel Estevez, a director, have not adequately managed risks put in place proper internal and external controls, the central bank is quoted as having said. 

Martino “didn’t direct the necessary actions to mitigate and address adequately the risk of prevention of money laundering and financing of terrorism,” the central bank is quoted as having said in its statement.

This publication is in contact with Argentina’s central bank to seek further details.

One account of the matter, by Bloomberg, stated that HSBC allegedly helped clients hide assets abroad to avoid paying taxes through shell companies and using legal advisors and lawyers. Argentines held as many as 4,000 accounts at HSBC’s Geneva branch, with only about 125 having declared funds. HSBC has denied wrongdoing.

"HSBC Argentina continues to operate normally in the country. HSBC Argentina  complies with the laws and regulations that govern its activity in the country and will continue cooperating with the Justice and regulators in Argentina," the bank told WealthBriefing in a statement today.

The episode will be an embarrassment to a bank that earlier this year was hit by allegations that its Swiss private banking business, headquartered in Geneva, had held a raft of secret accounts, although the bank has insisted that new systems have been put in place since 2008 and that a large number of accounts have been shut down.