HSBC declines to comment on Manx accounts
International bank HSBC has declined to comment on whether they are cracking down on Isle of Man accounts held by UK residents.
It was widely reported this week that the bank is contacting holders of accounts in Jersey and asking them to produce identity documents at one of the Channel Islands’ branches.
The bank confirmed that some of their customers have been contacted but would not specify whether the same checks are being carried out on Manx residents or holders of accounts based in the Isle of Man.
However, a number of iomtoday sources in the Isle of Man have confirmed they have also been asked to confirm their details – and have been told they risk having their accounts closed if they fail to comply.
The bank described a BBC report that claimed all accounts held in Jersey by UK residents were being closed as ‘inaccurate’.
In a statement issued to media in the UK and Isle of Man, HSBC said: ‘We have been reviewing the details we hold on our customers to ensure we have the information we need to protect them, together with wider society, against fraud and other financial crime.
‘With financial crime becoming more sophisticated, keeping accurate, up-to-date information on customers such as complete proof of identity or address, helps us monitor transactions effectively for potential fraudulent activity.’
They declined to comment further or answer questions relating to the bank’s Isle of Man operation.
It is legal for UK residents to hold a bank account anywhere in the world, but they are obliged to ensure that they pay the correct amount of tax.
As part of a crackdown on those attempting to hide money offshore, a series of international agreements will come into force in the next two years.
In 2013, local banks and financial institutions were obliged to write to any customer they suspected of being a UK taxpayer asking them to declare overseas accounts to HMRC.
Meanwhile financial information on UK taxpayers with accounts in the Isle of Man will be reported to HM Revenue & Customs automatically each year from 2016 under the Foreign Account Tax Compliance Act (FATCA agreement).
