Bank asks
clients to prove ID in attempt to avoid further accusations of helping tax avoidance after scandal involving its Swiss arm
The Guardian, Jill Treanor, Tuesday 17 March 2015
 |
| An HSBC branch in Jersey. Photograph: Alamy |
HSBC is
contacting thousands of holders of Jersey accounts who live in the UK as part
of efforts to avoid accusations it is helping to shelter money from tax
authorities.
Britain’s
biggest bank has written to customers who hold Jersey accounts to ask them to
take proof of identity to a branch on the island, or risk having their accounts
closed.
The move
does not affect customers who hold offshore accounts through its Jersey-based
HSBC Expat operation, which is aimed at people permanently working
internationally.
The bank,
under fire for helping 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.”
It is the
latest move by HSBC 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 £1.2bn fine from US authorities, in 2012, for breaching
money-laundering rules and allowing Mexican drug barons to move cash around the
financial system.
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.
Barclays
said: “Barclays takes its responsibilities seriously, whether it is to know our
clients, or through compliance with the range of agreements that Jersey has in
place with tax authorities.
“We
continually review our clients’ portfolios and circumstances to ensure that we
remain compliant and that we are offering appropriate services.”
A
spokesperson for bailed out Royal Bank of Scotland said: “RBS is committed to
working with the authorities to prevent financial crime. We continually review
our policies and procedures to ensure we are adhering to the rules and
regulations of all the jurisdictions in which we operate. This includes
reviewing our customer portfolios to make sure we are both best meeting their
needs and remaining compliant.”
Revelations in the Guardian and other publications about the activities of HBSC’s Swiss
operations have put a fresh focus on the tax avoidance practices of banks and
their wealthy clients.
Leaked
details of accounts held at HSBC’s Swiss arm showed how the bank helped wealthy
customers dodge taxes and conceal millions in assets, doling out bundles of
untraceable cash and advising clients on how to circumvent domestic tax
authorities. In 2012, the Daily Telegraph exposed clients of HSBC in Jersey.
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