HSBC’s Swiss private banking arm is discontinuing services for high-net-worth clients from the Middle East, affecting over 1,000 individuals from Saudi Arabia, Lebanon, Qatar, and Egypt with assets above $100m. The bank aims to reshape operations, focusing on areas of competitive advantage, amid an investigation into suspected money laundering activities.

The initiative to end client relationships is expected to be completed within six months, with a specialized team overseeing the process. HSBC’s Swiss private banking sector has struggled to maintain its position in the Middle Eastern market, facing challenges in wealth management services. The bank is under investigation for alleged money laundering activities involving transactions between Lebanon and Switzerland.

Last year, Finma highlighted instances where HSBC Private Bank (Suisse) failed to verify the source and use of assets in transactions exceeding $300m. HSBC was ordered to revamp its anti-money laundering protocols and review high-risk client relationships, including those involving politically exposed persons. The bank is prohibited from taking on new PEP clients until compliance is verified.

Read more at Yahoo Finance: HSBC Swiss Private Bank cuts ties with middle eastern clients amid scrutiny