HSBC terminates business ties with over 1,000 wealthy Middle Eastern clients amid restructuring efforts.

HSBC's Swiss private bank has reportedly severed ties with over 1,000 clients in the Middle East, mainly wealthy individuals with assets over $100 million. The move follows the bank's restructuring plans and a Finma investigation into its handling of politically exposed persons. The bank is focusing on areas where it has a competitive advantage, citing a need to create a simpler and more dynamic organization.

HSBC's Swiss private bank has reportedly severed ties with over 1,000 clients in the Middle East, primarily wealthy individuals with assets exceeding $100 million. The move comes as part of the bank's restructuring plans and follows an investigation by the Swiss financial watchdog, FINMA, into its handling of politically exposed persons (PEPs) [1].

The bank's Swiss private bank is reportedly informing clients that they will no longer be able to use its services, with letters advising them to move their accounts elsewhere in the coming months [2]. This decision follows a Finma order last year, which instructed HSBC not to enter into new business relationships with PEPs and to conduct a review of its relevant business [2].

HSBC has cited the need to create a simpler and more dynamic organization, focusing on areas where it has a competitive advantage. The bank has been facing challenges in the Middle East region, including the departure of high-profile bankers and struggles against rival firms [2].

The bank's Swiss unit had been part of its efforts to build wealth offerings for the Middle East, but it has faced setbacks, including investigations into suspected money laundering connected to the alleged embezzlement of hundreds of millions of dollars by the former head of Lebanon's central bank [2].

HSBC's move to cut ties with these clients is expected to be largely completed within six months, and the bank is putting in place a team to assist with the closures [2]. The bank has stated that it remains committed to its Middle East and Swiss wealth businesses, with Switzerland playing a key role in supporting clients globally [1].

References:
[1] https://www.reuters.com/business/finance/hsbc-swiss-unit-culls-wealthy-middle-eastern-clients-amid-regulator-scrutiny-ft-2025-08-24/
[2] https://www.swissinfo.ch/eng/hsbcs-swiss-bank-said-to-exit-1%2C000-mideast-clients-amid-revamp/89882820