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Meng Wanzhou, Executive Board Director of the Chinese technology giant Huawei, attends a session of the VTB Capital Investment Forum "Russia Calling!" in Moscow, Russia October 2, 2014.

Alexander Bibik | Reuters

Meng Wanzhou, Executive Board Director of the Chinese technology giant Huawei, attends a session of the VTB Capital Investment Forum “Russia Calling!” in Moscow, Russia October 2, 2014.

In the saga involving the recent arrest of Huawei CFO Meng Wanzhou in Canada, questions have surfaced as to whether U.K. banking giant HSBC will be named in the legal case.

According to a story in the Wall Street Journal, a monitor appointed by the U.S. government to oversee HSBC’s anti money-laundering controls flagged illicit transactions made by Huawei at the bank and shared them with New York prosecutors. That led to the arrest Saturday of Wanzhou, potentially for violating U.S. sanctions that prohibit Huawei from selling equipment to Iran.

HSBC is not being investigated as part of the case, according to a person familiar with the matter, who asked not to be named because the matter is confidential.

However, HSBC’s broader involvement could further complicate trade talks between the U.S. and China. Even though the bank is headquartered in the U.K., HSBC (originally known as the Hongkong and Shanghai Banking Corporation) is one of China’s most influential companies and has one of the largest foreign-owned banking networks on the mainland. HSBC incorporated locally in China in 2007.

Additionally, HSBC has had its share of encounters with U.S. authorities.

In 2012, the bank forfeited $1.9 billion to U.S. authorities for its role in allegedly laundering money from drug cartels as well as Iran, Cuba, Libya, Sudan and Burma, countries that were all sanctioned. The agreement also led to the federal monitorship of the company’s anti-money laundering organization in the U.S.

As far back as the 1990s, HSBC groups allegedly “worked with sanctioned entities to insert cautionary notes in payment messages,” including not mentioning Iran, according to the 2012 agreement.

Huawei has been under scrutiny since at least 2012 for accepting money from Iran and, according to a House Intelligence Committee Report, not complying with a federal investigation into the issue.

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Zopa, a UK P2P lender, plans more funding in 2019 as it opens a bank

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U.K. peer-to-peer lender Zopa plans on raising more money in 2019 as it looks to open up its own bank, its boss told CNBC.

The financial technology start-up recently obtained a banking license from Britain’s financial regulator, on the back of a £60 million ($76.5 million) funding round it closed last month.

“We will be looking to raise additional capital in 2019,” Zopa Chief Executive Jaidev Janardana told CNBC in an exclusive interview. “The focus of that (will be) to raise the regulatory capital to fund the growth of (our) balance sheet.”

Zopa’s chief said the firm would seek the additional investment from the private markets, and that it would look into how to go about raising the extra capital “early next year.” He didn’t comment further on how Zopa intended to raise the funds or how much it would seek to raise.

The company is considered to be one of the world’s first peer-to-peer lenders, having launched in 2005, ahead of U.S. rival LendingClub’s 2007 launch and domestic enterprise-focused competitor Funding Circle’s 2010 launch. Peer-to-peer lending is a method of financing where borrowers are connected with investors through an online platform.

The fintech firm is looking to launch a fixed-term savings product, a credit card and a money management app after the U.K.’s Financial Conduct Authority granted it permission to operate a bank.

Zopa’s banking license is currently at a “mobilization” phase, the firm said on Tuesday, with restrictions placed on it by the FCA. It will need to meet a set of conditions laid out by the watchdog before it is granted a full banking license.

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ECJ confirms that UK can stop Brexit 

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Not according to the U.K. government. May’s team have stuck fast to the message that her deal is the only reasonable outcome of Brexit and that Britain will definitely leave the European Union on March 29 next year

In a statement, the Department for Exiting the EU further played down the case’s importance: “The government has made submissions to the CJEU. In any event, the government will not be revoking Article 50.”

On Tuesday, Theresa May will put her Brexit proposal to the test in the U.K. Parliament. Should her motion fail to satisfy lawmakers, the possibility of pressing pause or cancelling Brexit may increase.

The House of Commons would still need to vote to stop Article 50 but those against Brexit can highlight that, beyond Westminster, there is now no legal impediment to stopping the divorce.

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BJP headed for setbacks amid farmer unrest

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An Indian woman casts her vote at a local polling station for state elections in the village of Raisar in Rajasthan on Dec 7, 2018.

Vishal Bhatnagar / NurPhoto / Getty Images

An Indian woman casts her vote at a local polling station for state elections in the village of Raisar in Rajasthan on Dec 7, 2018.

Farmer discontent and weak job growth could hurt the performance of Indian Prime Minister Narendra Modi and his ruling Bharatiya Janata Party in state elections. That offers a crucial opportunity for the main opposition party, the Indian National Congress, to shine.

Five states recently went to the polls to elect representatives to their respective assemblies. Votes will be counted on Tuesday, with special attention on the regions of Madhya Pradesh, Chhattisgarh and Rajasthan. The three Hindi-speaking areas boast a combined state domestic product of roughly $305 billion and are among the country’s easiest places to do business, according to the World Bank.

Analysts anticipate the outcome in the three states could serve as a preview for the country’s general election in 2019.

“The results of these elections, while not conclusive, may serve as bellwethers for whether the nearly 65 parliamentary seats from the electorally important states of Madhya Pradesh, Rajasthan, and Chhattisgarh will ultimately go to the opposition Indian National Congress party or to the BJP in 2019,” said Kartikeya Singh, deputy director of the Wadhwani Chair in U.S.-India policy studies at the Center for Strategic and International Studies, in a note.

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