HSBC is to recruit a line-up of heavyweight figures including Britain's former top taxman to oversee a new effort to combat financial crime following the bank's $1.9bn settlement of money-laundering allegations late last year.
I have learnt that Dave Hartnett, former head of Her Majesty's Revenue & Customs (HMRC), and Bill Hughes, former head of the Serious Organised Crime Agency, are among a group that will head a new financial crime committee that will be set up to ensure tighter compliance with tightening global regulations.
The formation of the committee, which will report directly to Douglas Flint, HSBC's chairman, and Stuart Gulliver, its chief executive, is expected to be announced today, according to insiders at the bank.
I hope Hartnett does a good job for HSBC - heaven knows they need someone who will.
But I also hope, just a little, that he may also come out and campaign for tax justice too. Despite it all, I think that's still somewhere at his core. And I don't think that's wishful thinking: that's the man I met for some time. And he could do a power of good if he were to use his knowledge now to say HMRC must have the powers it needs to stop the corruption of tax abuse.
Go on Dave, you could do it.
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Don’t bet on it, gamekeepers turning poachers comes to mind.
@Demetrius – surely that’s Richard’s point? As so-called game-keeper, he acted as poacher. Now he’s working for a poacher organization that has pretensions (window-dressing?) to being a gamekeeper, maybe he WILL be a gamekeeper?
Am I the only one finding Richard’s transformation a bit disconcerting. First he abandons his (and Meacher’s) GAAP and joins Aaronson and co on his GAAR committee – the same GAAR he criticised in the strongest of terms here. And now he tells us what a good egg Hartnett is after years of relentless criticisms!
Hang on – I have not for one minute changed by opinion on the need for a General Anti-Tax Avoidance Principle Bill
I remain of the opinion the General Anti-Abuse Rule is not good enough
And I can hope for Hartnett. I hope everyone believes in tax justice.
Mark, yes you are because Richard has already explained himself, perfectly reasonably, on GAAR and, pre-Hartnett at the top of HMRC, had praised his apparent efforts on avoidance.
I agree 100% with Richard that not being able to get all you want immediately is not a good reason not to engage with processes that are first steps in the desired course of direction.
I have only met Mr Hartnett once, but I would have to agree with Richard that he Mr Hartnett does seem to care deeply about issues like tax abuse and evasion. He certainly believes that during his time at HMRC many improvements were made that dealt with both issues.
I suspect Mr Hartnet cares even more about fattening up his bank account. The LDF showed he didn’t care about tax abuse and evasion in any kind of tax justice sense. He just wanted the money for the exchequer. Now he seems set to enjoy the beneficial world of large corporate tax risk management he has helped create, amongst the money lauderers at HSBC. I trust he will swat up on the banks AML policies and report all suspicious transactions involving tax evasion to his compliance officer. I wonder how much time he will be spending in Switzerland?
I note what you say
You could be right
But I still retain hope that there are higher qualities in life
Of course, I can be disappointed, but having hope is reasonable
You’re spot on, Phil. In addition to the sweetheart deals Richard lampooned Hartnett for his strongest criticism of the man was reserved for the Swiss tax evasion deal, which we all know benefits HSBC’s customers a great deal. And now Hartnett is supposed to be this tax justice champion!
Richard has been a great advocate of tax justice but he does not own the campaign, and if he continues to create this impression that he has the right to use the campaign to feather his own nest whether by sucking up to Aaronson or Hartnett, people will see through this very easily.
Oh for heaven’s sake grow up!
The last thing Aaranson would say was that I was doing was sucking up to him
And as for Hartnett – if you can’t see a challenge when one is laid down then clearly you’re being blind
But it’s also blind to think this campaign will be won without engaging with power: it won’t be. Speaking truth to power requires engagement. I have always done that, and served on Treasury committees until 2010 whilst meeting Hartnett regularly over a number of years. Did that stop the effectiveness of my campaigning then? You’e already acknowledged it didn’t. Why should it now?
Come, come, Richard. Surprised you took StewieG’s bait. You can’t be fully recovered from your recent indisposition.
Look after yourself.
Carol
Hi Richard I agree that having hope is reasonable and indeed human, but I suspect Hartnet is not the man you hope he might be.
I will be prepared to eat my words if his actions (not words) prove otherwise. I’m talking about the kind of scenario where Hartnet is so appalled by the swirling cesspool of criminality he had to stick his nose into at HSBC, that he turns whistleblower, walks out of HSBC and sues them under the Public Interest Disclosure Act.
Has a non executive director ever done that by the way? I suspect not as most of them are allowed to get nowhere near business operations in case they find out what is really going on. A bit like the auditors really, though they usually know all about tax avoidance, even if they are shy about discussing it in front of the PAC.
Michael and Richard, here is the Daily Mail’s take:
“Former UK tax chief accused of making sweetheart deals with Goldman Sachs and Vodafone is hired by HSBC for crackdown on crime”
Read more: http://www.dailymail.co.uk/news/article-2270813/Former-UK-tax-chief-accused-making-sweetheart-deals-Goldman-Sachs-Vodafone-hired-HSBC-crackdown-crime.html#ixzz2JUVVYtFU
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Do we know what measures are in place to prevent hartnett influencing HSBC’s attitude to tax, and what will be done if these measures prove ineffective?
Nobody believes in justice Richard.
Nobody believes in court impartiality.
Following the “crash” it has taken years to get to where organisations and people are being fined for their actions…too many buy their justice and depart for another high-paid career in finance.
And the banks being fined just means that their depositors money is being mis-used yet again..
Justice belongs to he who can afford it, or afford to buy it.
Who knows if the guys departure from HMRC was prompted by an offer he couldn’t afford to pass ?
I do believe in justice
I accept we haven’t got it
But I believe in it
That’s why I work for it
I remember when Hartnett was appointed to HMRC that Richard was hopeful whilst Private Eye were wary – and they’ve led the opposition ever since.
I’m guilty of optimism….
Bloody good job you are. How could sustain your campaign over so long if you weren’t?