[LONDON] HSBC’s Swiss private bank has launched a cull of more than 1,000 wealthy Middle Eastern clients, as it faces scrutiny from regulators over high-risk customers, the Financial Times (FT) reported on Sunday (Aug 24).
The bank will terminate its relationships with several customers from countries such as Saudi Arabia, Qatar, Lebanon and Egypt, many of whom have assets of more than US$100 million, the FT said, citing sources familiar with the matter.
In a statement to Reuters, HSBC referred to plans announced in October last year to reshape the group and added: “As part of this, we are evolving the strategic focus of our Swiss Private Bank.” It gave no further detail about any client accounts being closed.
In a separate e-mailed statement to Reuters, Barry O’Byrne, CEO of International Wealth and Premier Banking at HSBC, said the bank continued to have an “absolute commitment” to both its Middle East and Swiss Wealth businesses.
He said that Switzerland plays a key role in how it supports clients globally, “it’s one of our core wealth hubs”.
The FT said HSBC’s Swiss private bank had informed the affected clients that they will no longer be able to use its services, and will send out letters advising them to move their accounts elsewhere in the coming months.
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Bloomberg News had on Saturday reported that HSBC’s Swiss private bank would cut 1,000 Middle East clients.
Swiss financial watchdog Finma said in 2024 that the HSBC unit had breached its obligations in the prevention of money laundering in connection with two politically exposed persons.
The regulator found that suspicious transactions were carried out involving prominent personalities between 2002 and 2015 with a total value of US$300 million.
HSBC had said last month that law enforcement authorities in Switzerland and France were in the early stages of investigating its Private Bank (Suisse) unit in connection with alleged money laundering offences in respect of two historical banking relationships. REUTERS
