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| HSBC closing Britons' Jersey accounts amid ID checks | HSBC closing Britons' Jersey accounts amid ID checks |
| (about 4 hours later) | |
| HSBC is closing all accounts on Jersey belonging to customers living in the UK. | HSBC is closing all accounts on Jersey belonging to customers living in the UK. |
| It is part of a move by UK banks carrying out checks on the identity and addresses of thousands of their customers on the Channel Islands. | It is part of a move by UK banks carrying out checks on the identity and addresses of thousands of their customers on the Channel Islands. |
| HSBC is among those carrying out the move, according to documents seen by BBC News. | HSBC is among those carrying out the move, according to documents seen by BBC News. |
| The London-based bank said it had taken measures to prevent its services being misused. | The London-based bank said it had taken measures to prevent its services being misused. |
| The so-called "remediation exercise" comes amid pressure on banks to ensure that off-shore accounts cannot be used to hide money from UK tax authorities. | The so-called "remediation exercise" comes amid pressure on banks to ensure that off-shore accounts cannot be used to hide money from UK tax authorities. |
| Many of the bank's account holders in Jersey have been told to attend local branches with their passport and address details or their accounts may be closed. | Many of the bank's account holders in Jersey have been told to attend local branches with their passport and address details or their accounts may be closed. |
| Asked about the move, Jersey's Chief Minister Ian Gorst told BBC News that banks "have to comply with the legislation that we have in place". | Asked about the move, Jersey's Chief Minister Ian Gorst told BBC News that banks "have to comply with the legislation that we have in place". |
| "They strongly have to know who their customer is, where the funds have come from, (and) what they are doing with the funds," he said. | "They strongly have to know who their customer is, where the funds have come from, (and) what they are doing with the funds," he said. |
| "If they are not able to able to satisfy themselves around those regulatory issues then they have to take decisions to close those accounts." | "If they are not able to able to satisfy themselves around those regulatory issues then they have to take decisions to close those accounts." |
| The move is understood to be part of a wider process known as "de-risking" whereby banks are attempting to comply with a series of global anti-fraud and transparency rules. | The move is understood to be part of a wider process known as "de-risking" whereby banks are attempting to comply with a series of global anti-fraud and transparency rules. |
| It also follows a series of high-profile cases in which banks have been investigated over allegations that off-shore or foreign accounts have been used to aggressively avoid or evade tax. | It also follows a series of high-profile cases in which banks have been investigated over allegations that off-shore or foreign accounts have been used to aggressively avoid or evade tax. |
| In 2012 the UK tax authority HMRC began an investigation into a data leak at HSBC in Jersey which led to allegations that British residents may have used accounts to launder money or evade taxes. | In 2012 the UK tax authority HMRC began an investigation into a data leak at HSBC in Jersey which led to allegations that British residents may have used accounts to launder money or evade taxes. |
| The Daily Telegraph reported at the time that more than 4,000 British residents with accounts at HSBC Jersey included a well-known drug dealer and bankers facing fraud allegations. | The Daily Telegraph reported at the time that more than 4,000 British residents with accounts at HSBC Jersey included a well-known drug dealer and bankers facing fraud allegations. |
| HMRC said its inquiry is currently looking into 170 of the cases and expects to raise £10m-£20m in unpaid taxes and penalties. | HMRC said its inquiry is currently looking into 170 of the cases and expects to raise £10m-£20m in unpaid taxes and penalties. |
| However, BBC News understands that no criminal prosecutions are likely to take place. | However, BBC News understands that no criminal prosecutions are likely to take place. |
| 'Up to standard' | 'Up to standard' |
| Jersey's financial regulator JFSC also carried out an investigation into HSBC which found that there were "isolated examples of criminality". | Jersey's financial regulator JFSC also carried out an investigation into HSBC which found that there were "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. | "We were satisfied the controls (the bank) were operating were generally good and up to standard," said JFSC's Director General John Harris. |
| HSBC said it conducted a full review and cooperated fully with the separate JFSC investigation and has implemented "numerous standards" to prevent services being used to evade taxes or launder money. | HSBC said it conducted a full review and cooperated fully with the separate JFSC investigation and has implemented "numerous standards" to prevent services being used to evade taxes or launder money. |
| The bank added: "We have exited clients who do not meet those standards or where we have concerns in relation to tax compliance." | The bank added: "We have exited clients who do not meet those standards or where we have concerns in relation to tax compliance." |
| The letters sent out to customers of HSBC Jersey are thought to involve a number of different types of account holder. | The letters sent out to customers of HSBC Jersey are thought to involve a number of different types of account holder. |
| BBC News spoke to a pastry chef working in Jersey but living in France who said she had been "forced" to close her account as she didn't have an address in Jersey. | BBC News spoke to a pastry chef working in Jersey but living in France who said she had been "forced" to close her account as she didn't have an address in Jersey. |
| Stringent rules | Stringent rules |
| A man describing himself as a student in Jersey said he had been sent three letters in a month saying he must attend his branch or his account would be closed down. | A man describing himself as a student in Jersey said he had been sent three letters in a month saying he must attend his branch or his account would be closed down. |
| An individual originally from Jersey, but living in the UK, has been told his account with HSBC Jersey is being closed down "to comply with HSBC Group standards". | An individual originally from Jersey, but living in the UK, has been told his account with HSBC Jersey is being closed down "to comply with HSBC Group standards". |
| Jersey's finance authorities point out that the island complies with international regulations and said its tax avoidance and anti-fraud rules are among some of the most stringent in the world. | Jersey's finance authorities point out that the island complies with international regulations and said its tax avoidance and anti-fraud rules are among some of the most stringent in the world. |
| An independent report in 2013 by the research firm Capital Economics suggested that financial activity in Jersey helped provide up to £2.5bn in UK tax revenues each year. |