Business banking news review: week ending 19 March 2015
Because the Universe decided that HSBC isn’t quite hated enough by the world, the bank has decided to begin shuttering accounts of UK nationals in Jersey.
There are some personal and business bank account providers in the UK that aren’t half bad, really. Sure, those High Street financial service providers might have a stranglehold on the competition – even with the new seven-day current account switching rule, but it’s not like it isn’t an absolutely horrid experience waiting in queue at your local branch to conduct your banking business.
Oh, wait, it is, isn’t it? Well if you live in Jersey and you’re a British national, don’t worry – HSBC will take that problem away from you by simply closing your account. Better yet, you’ll get a letter about it in the post!
Actually it’s not nearly as nefarious as it sounds. The bank is complying with legislation in Jersey designed to eliminate money laundering, and it’s only bothering with Brits with Jersey bank accounts yet no longer live on the island. At first, there was a massive uproar because a BBC report had said HSBC was shuttering every single account of UK-resident customers, but the bank rushed to say that’s not accurate at all – and that only a handful of accounts have been closed down.
Truth be told, the bank is reviewing the details it holds on its customers to make sure that HSBC has the information needed to protect them against financial crime like fraud. Meanwhile, the bank has been weathering a massive storm of bad publicity after its Swiss private bank suffered a data leak, revealing a gigantic tax avoidance row; contrary to popular belief, Jersey’s financial regulator hasn’t singled the bank out but insists that all banks in operation on the island are cleaning out the cobwebs in order to be compliant with the Financial Action Task Force’s anti-money laundering directives.
So anyway, don’t believe the hype if you hear how HSBC just threw all of its British customers out of Jersey. Just the ones that don’t ‘need’ an account in Jersey are on the chopping block – and it’s not really the bank calling the shots on this one. If you have a problem, take it up with Jersey’s financial regulator if you like.