“We have sent some letters to HSBC account holders living in the UK asking if they can prove their link with the island,” said a spokesperson for HSBC who was unable to confirm how many letters had been sent or how many accounts had been closed as a result.
The BBC reported on Tuesday that HSBC was closing all accounts in Jersey belonging to customers who live in the UK.
In a formal statement the bank said: “We have been reviewing the details we hold on our customers to ensure we have the information we need to protect them, together with wider society, against fraud and other financial crime.”
“With financial crime becoming more sophisticated, keeping accurate, up-to-date information on customers such as complete proof of identity or address, helps us monitor transactions effectively for potential fraudulent activity.”
“HSBC has implemented numerous standards designed to prevent its banking services being used to evade taxes or launder money, and we have exited clients who do not meet those standards or where we have concerns in relation to tax compliance,” the bank said.
In general, banks are obliged to conduct regular checks on the identity and addresses of their clients to meet tax compliance regulations and HSBC’s latest move is not necessarily anything out of the ordinary.
However, the criticism HSBC received over its compliance culture and standards of due diligence at its Swiss private bank, means it could well be tightening up its operations across all of its offshore jurisdictions.
Jersey’s Chief Minister Ian Gorst told the BBC that banks “have to comply with the legislation that we have in place”.
“They strongly have to know who their customer is, where the funds have come from, [and] what they are doing with the funds,” he said.
“If they are not able to able to satisfy themselves around those regulatory issues then they have to take decisions to close those accounts.”
