Menwe Wanzhou, CFO of Huawei, looked for documents from HSBC in her fight against extradition from Canada to the United States.
HSBC and Meng Wanzhou, chief financial officer of Huawei Technologies, have reached an agreement in a dispute over the publication of documents related to fraud allegations against them, their lawyers told a Hong Kong court.
Judge Linda Chan had issued court orders within the meaning of the agreement, she said on Monday. However, the orders were not immediately available.
The lawsuit reached the Hong Kong court last month after a British judge blocked the publication of internal HSBC documents in connection with the fraud allegations against Meng in February.
Meng, who has been under house arrest in Canada since his detention at Vancouver Airport in 2018, is charged with bank fraud in the US for misleading HSBC about Huawei dealings in Iran and for violating US sanctions by the bank.
Documents requested in Hong Kong include those related to the assessment of compliance, sanction, credit or reputational risk submitted by Huawei Technologies, Skycom or Canicula Holdings between late 2012 and April 2015 following an earlier judicial filing. Meng’s lawyers have previously argued that HSBC knew Huawei controls the accounts of Canicula Holdings Ltd, the parent company of Skycom, the company accused of doing business in Iran.
The tea house meeting
A key element of the US case is a meeting between Meng and a banker from HSBC Holding Plc, held in August 2013 at a tea house in Hong Kong, exposing himself to the risk of sanctions violations. Meng denies the allegations.
Huawei CFO Meng Wanzhou [File: Jennifer Gauthier/Reuters]Meng searches for records at the bank and said documents would show the lenders were aware of the links with Iran-related Skycom Tech Co.
Meng’s defense team had previously argued in a Canadian court that the matter was outside the reach of US law because Meng was a Chinese national and the meeting took place in Hong Kong, a Chinese territory. The US claims jurisdiction in part because the transactions that HSBC processed for Huawei were processed through the US dollar system. Prosecutors in the US have often brought charges against foreigners for using what is known as “dollar clearing”.
The scope of Monday’s agreement was unclear.
In response to Reuters’ request for comment on Monday, a Huawei spokeswoman and an HSBC spokeswoman replied that they had reached an agreement but did not provide any further details.