HSBC Swiss bank to end business with clients in Middle East: report

Geneva: In a bid to lower exposure to individuals that it deems high-risk, HSBC Holdings Plc’s Swiss private bank has decided to end business with wealthy clients from the Middle East. The said clients, which are more than 1000 in number, include many with assets exceeding $100 million, Bloomberg reported.

The said clients are based in the Middle Eastern countries of Saudi Arabia, Lebanon, Qatar, and Egypt, and the process of ending their business is currently underway.

Sources of Bloomberg informed that some clients have already been issued a communication regarding the same, and more will receive a closing letter advising them to consider transferring their assets to other jurisdictions.

The bank said in an email statement, “HSBC announced plans in October last year to reshape the Group to accelerate strategic delivery. As part of this, we are evolving the strategic focus of our Swiss Private Bank.”

The bank announced the reshuffle while the Swiss banking watchdog Finma is carrying out a scrutiny of the bank and found that it failed to carry out adequate due diligence on high-value accounts owned by politically exposed persons. Sources said that the exit of the said clients will be completed within six months, and the lender is forming a team to assist them with the procedures.

The bank claimed that it is creating a simpler, more dynamic organisation, which will focus on increasing leadership and market share in the areas where it has a clear competitive advantage.

In 2023, Finma ordered HSBC not to enter into any new business relationship with so-called politically exposed individuals who have a public role that makes them more susceptible to corruption.