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HSBC reaches deal with Huawei’s Meng over dispute
Lawyers for Meng Wanzhou say HSBC documents show senior managers of the bank were aware of her dealings in Iran. They claim the US extradition case is flawed. Photo: Reuters.

(ATF) HSBC and Huawei Technologies’ chief financial officer Meng Wanzhou have reached an agreement in a dispute about the publication of documents relating to US fraud allegations against her, their lawyers told a Hong Kong court.

The legal dispute reached the Hong Kong court last month after a British judge in February blocked the release of internal HSBC documents relating to the US fraud allegations against Meng.

Meng, who has been under house arrest in Canada since being detained at Vancouver airport in 2018, is facing charges in the US for allegedly misleading the banking giant about Huawei dealings in Iran, causing HSBC to violate US sanctions.

Meng, who says she is innocent, was seeking the publication of documents relating to her efforts to battle extradition from Canada to the US.

Huawei and HSBC told Reuters they had reached an agreement, but did not provide any further details.

INTERNAL PROBE

In 2019, an internal investigation by HSBC into Huawei’s connections to a suspected front company in Iran found that the Chinese telecommunications equipment maker maintained close financial ties to the firm years after purportedly selling the unit.

The HSBC probe of Huawei came in late 2016 and 2017 and the bank’s findings, which have not been made public, were used by US authorities to help bring its current criminal case against Meng.

US authorities allege Huawei used the company, Skycom, to obtain embargoed American goods and technology in Iran and to move money out of the country via the international banking system.

HSBC shares fell 1.2% on Monday to HK$46.

With reporting by Reuters

ALSO SEE:

Meng defence team counters claims HSBC misled by Huawei chief 

HSBC to focus on wealth management across Asia

Huawei records modest 2020 growth as US sanctions take a toll

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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