Geneva prosecutors have raided the Swiss office of the British banking giant HSBC and announced a criminal investigation into accusations it was laundering money.

The raid was taking place at the offices of HSBC Private Bank Switzerland, according to a statement released Wednesday by Geneva’s prosecutor.

Prosecutors said they were investigating criminal charges of “aggravated money laundering” against the bank, but stressed the probe could be broadened to include “physical persons suspected of committing or participating in acts of money laundering.”

Earlier this month, a large network of investigative journalists found that the Swiss arm of HSBC, Europe’s largest bank, helped global clients avoid taxes and hide hundreds of millions of dollars in assets.

Those clients included drug traffickers, arms dealers and celebrities.

The International Consortium of Investigative Journalists (ICIJ) and several news organizations obtained bank documents dating back to 2007 that reveal the scope of the tax dodging.

The leaked documents contain details about more than 100,000 clients from around the world – both individuals and legal entities.

According to the ICIJ report, academic studies estimate that $7.6 trillion is held in overseas tax heavens, preventing governments from collecting about $200 billion a year in tax revenues.

HSBC responded to the report by saying its compliance efforts have been insufficient. The bank said it has undergone a “radical transformation” in recent years and now enforces more stringent reporting requirements.

The new revelations may trigger calls for closer oversight of sophisticated tax avoidance by the wealthy and multinational companies, a key political issue in Britain and across Europe.
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