Household HSBC Watch

United States based consumer advocates Household - HSBC Watch said today that HSBC Plc took another blow to its reputation as the Account 98 scandal grows. HSBC stands accused of passing funds to organizations bankrolling Palestinian suicide bombers.

A forthcoming court action, launched by lawyers representing 500 victims of suicide attacks, claims that an account at an HSBC subsidiary in Saudi Arabia is being used to fund groups such as Hamas and Palestinian Islamic Jihad and the al-Aqsa Martyrs Brigades, and also to designated international terrorist organizations.

The money was allegedly raised through public fundraising in Saudi Arabia. One such appeal declared: “Our Palestinian brothers are facing the Israeli war machine and they are defending the third sacred place in Islam, the blessed al-Aqsa mosque.”

Donations were apparently collected in an account called account number 98 in eight Saudi banks, including HSBC’s subsidiary. The allegations will be made in a legal action to be launched in the United States by British, American and Israeli lawyers representing 500 victims of suicide bombings. The first writ, to be lodged this week (December 15 2004) will name a Jordanian-owned bank; further writs are to be filed against at least seven other banks and their subsidiaries, including HSBC.

HSBC purchased scandal plagued predatory lender Household International in 2002. Household International is now called HSBC Financial Services. Household - HSBC Watch reminds socially responsible consumers of all faiths to follow this scandal closely while deciding if they want to patronize HSBC Bank, HSBC Financial Services, or over 60 merchants that use financing from HSBC. For instance, said Household - HSBC Watch member Mike Blake, “Best Buy, Menards, Helzberg Diamonds and over 60 others have private label store credit card operations backed by predatory lender HSBC Finance which is the old Household International.”