[JURIST] A state prosecutor for France on Friday requested that HSBC [corporate website], a Swiss private bank, face a criminal tax evasion trial. The request is a result of the investigation into a massive file leak [ICIJ report] showing that HSBC’s Swiss bank profited from conducting business with people engaged in a variety of illegal activity, particularly tax evasion. Allegations suggest that the bank set up schemes [BBC report] allowing wealthy clients to conduct business and withdraw large sums of cash under pseudonyms, which the bank allegedly insisted they use. While the bank admitted that it “was accountable for past control failures,” [BBC report] it claims that such behavior is in the past and it “has fundamentally changed.” The bank reportedly turned down a plea deal [Le Monde report, in French] that would have required them to pay €1.4 billion (USD $1.5 billion). The bank now has one month to respond to the accusations in France, and at the conclusion of that period the judges will decide whether a trial will ensue.

This is the latest development in an on-going string of fraudulent practice investigations into HSBC since the 2009 leaks by Herve Falciani [BBC profile]. Currently HSBC is under investigation by eight nations for tax evasion [Business Insider report]. Last month the Swiss police raided HSBC’s Geneva office on suspicion of aggravated money laundering [BBC report]. In 2012 the US Department of Justice (DOJ) [official website] announced [press release] that HSBC Holdings and HSBC Bank USA [corporate website], a federally chartered banking corporation based in Virginia, agreed to forfeit USD $1.256 billion to settle a multi-year probe related to the group’s failure to enforce rules to prevent money laundering. As part of the DOJ’s deal, HSBC agreed to enter into a deferred prosecution agreement for its violation of various federal laws.