HSBC to close Jersey accounts as it carries out ID checks

17th Mar 2015 10:24

HSBC is in the process of closing all accounts on Jersey belonging to customers residing in Britain, as the bank carries out checks on the identity and addresses of its customers on the Channel Islands.The lender, which described the preventive measure as a "remediation exercise", said the checks were aimed at ensuring that off-shore accounts were not used to concealing capitals from UK tax authorities.HSBC customers in Jersey have been requested to visit local branches with their passport and address details or risk having their accounts closed."Banks have to comply with the legislation that we have in place," Jersey's Chief Minister Ian Gorst was quoted as saying by BBC News."They strongly have to know who their customer is, where the funds have come from, (and) what they are doing with the funds."If they are not able to able to satisfy themselves around those regulatory issues then they have to take decisions to close those accounts."JFSC, Jersey's financial regulator, said it had carried out a separate investigation into the lender's practice, which had found "isolated examples of criminality"."We were satisfied the controls (the bank) were operating were generally good and up to standard," said JFSC's Director General John Harris.The bank said that, as a result of the investigation, it conducted a review of its operation and implemented "numerous standards" in its quest to stop tax evasion and money laundering.HSBC shares were up 0.52% to 564.90p at 10:48 on Tuesday.