News Analysis HSBC Bank

California Baptist University

Managerial Ethics Section B

Dr. Jim Bishop

Daniel Garcia 

News Analysis 

HSBC Bank Secrecy or Tax Evasion  

US authorities are investigating whether the bank allowed Americans evade taxes after reports claim that HSBC helped hide millions of dollars in client assets. HSBC Holdings , faces an investigation by US authorities and over by British lawmakers after admitting faults of its Swiss private bank that would have allowed some clients evade taxes. Prosecutors have increased efforts to determine whether the second largest bank in the world helped Americans evade taxes after media reports said that the bank had helped rich people to hide millions of dollars in client assets. The US authorities are also investigating whether HSBC manipulated the exchange-rate an official said the investigation could lead to the Justice Department review a deferred prosecution agreement with the bank reached in 2012. The agreement was part of a pact per thousand 900 million dollars which allowed HSBC avoid criminal charges after it was discovered that helped move hundreds of millions of dollars from drug trafficking to the US financial system. It is quite possible that (the agreement) can be reopened as a result of the bank's activities in one or both fronts for tax evasion or manipulation change, said the US official, who requested anonymity because the investigations are ongoing. British lawmakers say they plan to open an investigation into the bank after it came under public scrutiny and regulators for their past practices in Switzerland. The International Consortium of Investigative Journalists (ICIJ), which coordinated the disclosure of details leaked customer data, said that the list of people with accounts at HSBC in Switzerland include professional football players and tennis, rock stars and Hollywood actors. Having a bank account in Switzerland is not illegal and many of them have legitimate purposes. Among the list of customers is King Mohammed of Morocco, politicians, corporate executives as the recently deceased president of  Santander Bank Emilio Botin, and wealthy families. The documents also mention arms dealers, people linked to former dictators and traffickers of "blood diamonds" as well as many individuals present in the current list of US sanctions, as Gennady Timchenko, next to Russian President Vladimir Putin . The Volga Timchenko Group declined to comment. The customer list was provided by HSBC Hervé Falciani, a former employee of information technologies Swiss subsidiary of HSBC. The bank said Falciani downloaded details of accounts and customers in late 2006 and early 2007. Switzerland charges against Falciani by industrial espionage and violating bank secrecy laws in the country. Falciani could not be reached for comment, but previously said he is an informant trying to help governments to persecute citizens using Swiss accounts to evade taxes. HSBC should consider the consequences of their decision can generate short and long term because although it seems to be the second most important bank in the world, forces him to take care of their prestige. One of the considerations that we have as professionals is to respect our clients and colleagues, so lying about tax evasion is not only dishonest, affecting confidence in the profession itself. HSBC Switzerland "is not interested in having business relationships with customers or potential customers who do not respond to our demands on financial crime," the company added. These revelations about past practices must remember that the old business model of Swiss private banking is no longer acceptable.

California Baptist University 

Managerial Ethics Section B

Dr. Jim Bishop 

Daniel Garcia 

News Analysis: The genuine concerns about artificial intelligence

The Bible describes God as a rational Being who created the world from nothing and who governs it as sovereign. Logic, order, purpose, natural law: these characteristics are recorded in the universe as a reflection of the will and mind of God. Besides the made of human beings in His image, which means that our mind is prepared to operate according to the divine rationality. As God is the author of the world and humanity, we are prepared intellectually to understand the truth about Him and the world He created. While some scientists have warned of concern that intelligent computers eventually develop own thoughts and destroy the human race, others consider it impossible for humans to lose control over the machines. The idea that one day decide to rebel computers is not entirely farfetched since the dawn of civilization, mankind has been obsessed by the possibility that someday will become extinct. The asteroid impact on Earth and the specter of a nuclear holocaust are the ancient fears of our time. But some scientists believe that a new nightmare should be added to the list. Their concern is that intelligent computers will eventually develop own thoughts and destroy the human race. The latest warning comes from Professor Stephen Hawking, the famous astrophysicist afflicted with ALS who said that artificial intelligence could "be more crafty than any of us," and that there is a "near certainty" of a technological disaster. Most experts do not rule out his pronouncements as a fantasy rooted in science fiction. But the pace of progress in artificial intelligence (AI), means that policy makers should already be weighing the social consequences. The idea that machines could one day be able to think like people have openly discussed since the early days of computing in the 1950s The enormous amount of money being poured into computing by US technology companies, together with the exponential growth of computer power, means that now are doing amazing predictions. According to a recent survey, half of the experts of IA in the world believe that human-level artificial intelligence will be achieved by 2040 and 90 percent say they will be achieved for IA 2075. Several experts talk about the possibility that the human brain will eventually be "designed with retro engineering." Some prominent technology leaders, meanwhile, warn that the consequences are unpredictable. Elon Musk, the pioneer of electric cars and private spaceflight in Tesla Motors and SpaceX he argued that advanced computer technology is "potentially more dangerous than nuclear weapons." Western governments must take seriously the ethical implications of developments in AI. One concern is that most of the research carried out in this field is conducted in private by technology companies in the United States. Google has made some of the most ambitious investments, ranging from his work in quantum computing to purchase this year of the company "start-up" British of IA, Deep Mind. But while Google created an ethics panel following the acquisition of Deep Mind, outsiders have no idea what the company is doing or how many resources are used to control technology instead of developing as quickly as possible. With the development of these technologies, lack of public oversight can be worrisome. That said, the risk that someday computers could pose a challenge to humanity must be put into perspective.Scientists may not be able to say with certainty when, or if, the machines will equal or surpass mankind. But before the world gets to that point, the union of human intelligence and computing undoubtedly help to address the urgent problems can not be solved otherwise. The growing ability of computers to process huge amounts of data, for example, play an important role in helping humanity to combat climate change and disease in the coming decades. There is no evidence that scientists have difficulty controlling computers, even in its most advanced stages. But this is a sector in which the pioneers must tread carefully and with open eyes to the continuing ability of science to impress.