Many of these clients hold assets of more than $100 million. Citing people familiar with the matter, Bloomberg reported on Saturday that the process is intended to minimize risks for the bank. Some clients have already been informed, while others will receive letters in the coming months recommending that they consider relocating their accounts to other jurisdictions. According to the sources, the separation is expected to be largely completed within six months. HSBC is currently assembling a team to support the process of terminating these client relationships.

«Developing Strategic Focus Further»

Bloomberg also quoted a statement from the bank: «In October of last year, HSBC announced plans to restructure the group in order to accelerate the implementation of its strategy. In this context, we are further developing the strategic focus of our Swiss private bank.»

The bank further explained: «We are creating a simpler, more dynamic organization that is focused on expanding our leadership position and market share in areas where we have a clear competitive advantage.»

A Consequence of the «Lebanon Connection»?

Bloomberg links the move to the fact that HSBC Private Bank (Suisse) was sanctioned last year by the Swiss financial market regulator Finma for failing to fulfill its anti-money laundering obligations. The case was allegedly connected to business relationships with the former long-time governor of Lebanon’s central bank and his brother, spanning from 2002 to 2015.

At the time, the bank stated that it planned to appeal Finma’s decision, as reported by finews.com.