HSBC closing down accounts in Jersey for non-residents

HSBC today warned its customers to either submit ID proofs for bank accounts in Jersey or risk their shutdown in the British dependency widely seen as a tax haven, in a bid to salvage its image following accusations that the global banking giant facilitated tax evasion.
HSBC has written to customers living in the UK who hold accounts in Jersey, asking them to take proof of identity to a branch on the island, or risk having their accounts closed, The Guardian reported today.
The move does not affect customers who hold offshore accounts through its HSBC Expat account operation.
Britain's biggest bank, under fire following claims it helped wealthy customers of its Swiss arm avoid tax, said: "We continuously review details we hold on all 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."
A spokesperson for the bank said: "Whilst we cannot comment on individual cases, 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."

It is the latest move by the London-based bank to take risk out of its business and follows its decision to shut accounts for the Vatican, embassy staff and charities in recent months following its 1.2 billion pounds fine from US authorities, in 2012, for breaching money-laundering rules and allowing Mexican drug barons to move cash around the financial system, the report said.

Last July, HSBC faced criticism after three high-profile Muslim organisations, including Finsbury Park mosque, were told their accounts would be closed.
Other banks have also been taking steps to verify the identity and residence of their account holders in Jersey.
The banking major has come under the scanner after a global expose in February by a grouping of investigative journalists disclosed details of over one lakh account holders in HSBC Geneva branch.
This included 1,195 Indian names, including those of big corporates and political leaders.
The controversy revolves around HSBC's Swiss division helping clients in more than 200 countries dodge taxes on accounts containing nearly USD 204 billion.

The bank's problems mounted this week when Swiss authorities later raided its offices as part of a money laundering probe.
The claims in the so-called "SwissLeaks" case emerged after a whistleblower took files from HSBC and passed them on to French authorities.