HSBC fined record £27.8m in money laundering case

However, the Geneva prosecutor dropped its investigation against HSBC in return for the financial settlement, which is one of the largest ever fines imposed by the Swiss authorities. Tax evasion is not a crime in Swiss law, and HSBC has not made any admission of guilt.

Leaked documents, obtained in February by news organisations including the Guardian and French daily Le Monde, found that almost 7,000 Britons were hiding funds in offshore Swiss bank accounts.

HSBC acknowledged failings in its Swiss banking arm, but maintained that it has since "fundamentally changed".

In a statement HSBC said:

“The investigation conducted by the public prosecutor of the canton of Geneva into HSBC Private Bank (Suisse) SA has been formally closed today. The investigation found that neither the bank nor its employees are suspected of any current criminal offences.

“The Geneva prosecutor acknowledges the progress the bank has made in recent years, including the improvements in its compliance function, internal processes and technology.”

HSBC is still being investigated over the allegations in the US, France, Belgium and Argentina.