HSBC is closing down all Jersey accounts for UK-based customers as part of a “remediation exercise” as it seeks to prevent misuse.
Account holders in Jersey have reportedly been told to attend local branches with their passport and address details to avoid their accounts being closed.
The BBC reports the account closures are part of a derisking drive as the bank seeks to mitigate its exposures to fraud.
An HSBC spokeswoman says: “Whilst we cannot comment on individual cases, HSBC has implemented numerous standards designed to prevent its banking services being used to evade taxes or launder money, and we have exited clients who do not meet those standards or where we have concerns in relation to tax compliance.”
The move comes after six weeks of intense focus on the bank following an investigation by the Guardian, BBC and the International Consortium of Investigative Journalists, which alleged HSBC’s Swiss private bank had helped clients dodge millions in tax.
The bank’s Jersey operation has also faced scrutiny, and in 2012 UK tax authorities probed allegations that British residents may have used HSBC accounts on the island to launder money and evade taxes.