Indian authorities told HSBC last year that they had sufficient evidence to prosecute HSBC Swiss Private Bank, and its Dubai entity, for “abetting tax evasion” by four Indian individuals and families, Europe’s largest bank disclosed on Monday as it reported its annual results for 2015.

The bank, which is facing tax investigations across the world, including in the US, Argentina, France, Belgium and India, said that it had received notices from two tax offices in India in August and November last year regarding the prosecution. The offices had called on the bank to show why a prosecution should not be launched against them. The bank had previously been issued summons and request for information in February regarding HSBC India.

The bank was “fully cooperating” with authorities, but warned that the resulting financial impact of the investigations globally could be “significant.”

“In light of the media attention regarding these matters, it is possible that other tax administrations, regulatory or law enforcement authorities will also initiate or enlarge similar investigations or regulatory proceedings,” the bank said.

The scale of the regulatory and legal challenges facing HSBC was revealed under the disclosures made by HSBC on Monday. It also emerged that the bank is being investigated by the US Securities and Exchange Commission for hiring practices of candidates in Asia, and allegations that some were referred by or related to government officials and employees of state-owned businesses. Other areas of investigation and civil suits include the rigging of the London inter-bank offered rate (LIBOR), forex trading, and fixing of the London gold market.

The disclosures come a year after a joint investigation by the International Consortium of Investigative Journalists and media organisations across the world published details of how HSBC’s Swiss banking arm helped thousands of wealthy clients avoid taxation and hide their assets. The list of those using the Swiss division included 1,195 Indian clients.

Loss in last quarter

HSBC shares tumbled on Monday as it reported a loss for the last quarter of 2015 and weak growth in profits for the full year.

Profit for the year grew by just 1 per cent to $18.8 billion, while it reported a loss before tax of $858 million in the fourth quarter against a profit of $1.7 billion for the same period the year before.

Group Chairman Douglas Flint pointed to “seismic shifts” in global economic conditions — in particular the fall in commodity and oil prices — but said that the bank’s diversified business model had left it well placed to deal with the current challenging environment.

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