HSBC Swiss Bank Purges Over 1,000 Middle Eastern Clients Amid Regulatory Scrutiny

HSBC’s Swiss private banking division is reportedly cutting ties with more than 1,000 affluent Middle Eastern clients due to increased regulatory pressure concerning high-risk accounts, according to a report in the Financial Times on Sunday.

The bank is set to end relationships with numerous clients from nations including Saudi Arabia, Qatar, Lebanon, and Egypt. Many of these clients possess assets exceeding $100 million, the FT stated, citing sources familiar with the situation. In a statement to Reuters, HSBC referenced their previously disclosed plans from October of the preceding year to restructure the group, adding, “As part of this, we are adjusting the strategic emphasis of our Swiss Private Bank.” The bank did not elaborate on specific account closures.

In a separate statement sent via email to Reuters, Barry O’Byrne, the CEO of International Wealth and Premier Banking at HSBC, affirmed the bank’s ongoing “absolute commitment” to its operations in both the Middle East and Swiss wealth management sectors.

He clarified that Switzerland maintains a crucial function in the way HSBC serves its global clientele, noting, “it’s one of our core wealth hubs”.

According to the FT, HSBC’s Swiss private bank has already notified affected clients that they will no longer have access to its services. Letters will be dispatched in the upcoming months, instructing them to transfer their accounts to other institutions.

Bloomberg News reported on Saturday that HSBC’s Swiss private bank would eliminate 1,000 Middle Eastern accounts.

In 2024, Swiss financial regulator FINMA stated that the HSBC unit had neglected its responsibilities in preventing money laundering related to two politically prominent individuals. The regulator discovered suspicious transactions involving these figures between 2002 and 2015, totaling $300 million.

Last month, HSBC acknowledged that law enforcement agencies in both Switzerland and France had initiated preliminary investigations into its Private Bank (Suisse) SA unit concerning possible money laundering offences linked to two past banking relationships.