BRUSSELS (Reuters) - HSBC (L:HSBA) has offered to co-operate with Belgian authorities and as a result a judge has withdrawn his threat to issue international arrest warrants against senior directors of its Swiss private banking arm, Brussels prosecutors said on Wednesday.
The Belgian judge has charged the HSBC unit with tax fraud and money laundering, accusing it of offering diamond dealers and other wealthy clients ways of hiding cash and evading tax.
Earlier this week, prosecutors said the judge was considering issuing international arrest warrants because the bank was not giving information voluntarily.
However on Wednesday they said the situation had changed.
"Based on the fact that the bank has made a proposal to offer co-operation ... such measures are no longer envisaged, with the people summoned responding to those summons," a statement by prosecutors said.
HSBC this week admitted failings in compliance and controls at its Swiss private bank after media reports said it helped wealthy customers conceal millions of dollars of assets in a period up to 2007.
It said it had transformed the unit in recent years to prevent it being used to evade taxes or launder money.
