HSBC Holdings’ Swiss private bank is ending relationships with wealthy Middle Eastern clients, including many with assets exceeding US$100 million, as the bank seeks to lower its exposure to individuals it deems high-risk, according to people familiar with the matter.
More than 1,000 clients from Saudi Arabia, Lebanon, Qatar and Egypt were among those being told they can no longer bank with HSBC’s Swiss wealth-management business, the people said, asking not to be identified discussing an ongoing process.
Some clients had already been informed and over the next few months would receive closing letters advising them they could consider transferring to other jurisdictions, the people said.
“HSBC announced plans in October last year to reshape the group to accelerate strategic delivery,” the bank said in an emailed statement. “As part of this, we are evolving the strategic focus of our Swiss private bank.”
The reshuffle comes at a time of ongoing scrutiny from Swiss banking watchdog Finma, which has found that the lender’s private bank failed to carry out adequate due diligence on high-risk accounts owned by politically exposed people. The exits were expected to be mostly completed within six months, and HSBC was putting in place a team to help it with the closures, the people said.
“We are creating a simpler, more dynamic organisation, focused on increasing leadership and market share in the areas where we have a clear competitive advantage,” HSBC said.
