Hain has been outspoken in his criticism of President Jacob Zuma and the Gupta family, referring to them as the "Gupta/Zuma transnational criminal network".
Standard Chartered has previously said that it closed the accounts used the in transactions in early 2014.
Following this, the Chancellor contacted the Financial Conduct Authority (FCA), Serious Fraud Office (SFO) and National Crime Agency stating that the allegations are being taken "extremely seriously". Zuma and the Guptas have denied any wrongdoing.
After a request from U.K. Chancellor Philip Hammond, the U.K. Financial Conduct Authority said Thursday it has been in contact with the two banks about their possible dealings with the family and "will consider carefully further responses received".
Transnet's contracts with Swiss crane manufacturer Liebherr and China South Rail is set to star in the FBI investigation, as USA authorities show they are not shy to pursue investigations against foreign nationals that may be using the American for possible money laundering.
South African banks like Standard Bank and Nedbank terminated all their business with Gupta-owned companies in April 2016.
Alphabet's Sidewalk Labs to build 'internet city' on Toronto waterfront
To kick off the revitalization, Alphabet plans to move Google Canada's Richmond St. headquarters to the Eastern Waterfront. The Sidewalks Lab in Toronto is being touted as the first " smart city built from the ground up".
Spokespeople for HSBC and Standard Chartered declined to comment.
The Federal Bureau of Investigation (FBI) has opened an investigation into the Gupta family, according to a report by EWN.
"It will be no secret to financial crime experts that criminals target large and credible financial institutions for the same reasons that legitimate multi-national networks do - for their global reach", Mr Hain, who grew up in South Africa, said in a September 25 letter to the United Kingdom chancellor of the exchequer, or finance minister, Philip Hammond. The South African bosses of accounting firm KPMG, which audited Gupta family businesses, also quit amid fallout from the affair.
Hain is expected to raise the matter in the House of Lords on Thursday.
Speaking to the Guardian, he said: "As a former anti-apartheid activist, whose parents were jailed and exiled from South Africa, I feel deeply pained by the betrayal of values of the freedom struggle that is occurring under the political leadership and its business cronies in South Africa today".
"We are taking this very seriously because we realise the consequences of not doing so for the reputation of the City of London and the UK", said the UK Minister of State for the Department for International Development, Lord Bates.