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Spain arrests whistleblower in HSBC tax evasion scandal

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Staff Writer | April 5, 2018
A former HSBC employee convicted for leaking account data that led to a tax evasion scandal has been arrested in Madrid on an arrest warrant issued by Switzerland.
Herve Falciani
Banking   French national and technology employee Herve Falciani
French national and technology employee Herve Falciani was sentenced in late 2015 to five years in prison for economic espionage. A Swiss court also convicted him for illegally obtaining data, breach of business confidentiality and of bank secrecy.

For many others, though, Falciani is a crucial whistleblower whose more than 100,000 records on prominent clients of HSBC Private Bank (Suisse) SA sparked a global wave of tax evasion probes.

The former IT specialist gave the data to French tax authorities in 2008, after some of it emerged in press reports.

France shared it with Spanish authorities and other governments.

As a result, the Swiss subsidiary of HSBC has been investigated in several countries for allegedly helping wealthy people around the world dodge taxes.

Falciani moved to Spain and cooperated with authorities there in some of the probes.

He was arrested in Barcelona in 2012, but Spain’s National Court denied a Swiss request to extradite him on the grounds that breaking secrecy laws was not subject to prosecution in Spain.