Argentina's central bank has ordered HSBC's local unit to name a new president and vice president for failing to prevent money laundering and tax evasion.
The bank denies any wrongdoing. Argentina's tax agency had charged HSBC bank in November with helping more than 4,000 Argentines evade taxes by placing their money in secret Swiss accounts.
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The central bank announced the decision to replace HSBC Argentina's president Gabriel Diego Martino and vice president Miguel Angel Estevez, Tuesday night.
Argentine Cabinet chief Anibal Fernandez defended the decision Wednesday. He said that if HSBC aided in money laundering, the central bank is within its rights to demand the naming of new executives.
HSBC Argentina says the bank is abiding by local law and will carry on operating as usual.