International banking giant HSBC has closed the bank accounts of more than 40 diplomatic missions, including Bangladesh High Commission in London, as part of its programme to tighten screening against money laundering and other risks, according to The Daily Star.
Papua New Guinea and the Vatican are among those said to be affected.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
HSBC said it will not mention any specific reason for closing the accounts.
Through this move, HSBC is trying to redeem its reputation after one of the world’s biggest money-laundering scandals hit the bank last year.
The Bangladesh High Commission was informed by HSBC on 11 June 2013 about the bank’s decision to close the accounts of Bangladesh missions in London, Birmingham, and Manchester.
Following HSBC’s decision, the high commission has opened two accounts with NatWest Bank on 5 August.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe high commission said that all funds have been transferred to the new accounts from HSBC. These accounts are now fully functional. It does not have an issue with HSBC.
The Bangladesh mission said the bank had informally informed that they had an issue with one embassy in London, which had prompted them not to continue the existing accounts for embassies and high commissions of more than 40 countries.
Talukdar Noman Anwar, head of communications for HSBC Bangladesh, said: "HSBC has been applying a rolling programme of strategic assessment to all its businesses since May 2011, and our services for embassies are no exception."
The US has fined London-based HSBC US$1.9 billion last year over claims the lender gave terrorists and drug cartels access to the US financial system. The bank was also accused of failing to monitor more than US$670 billion in wire transfers and more than US$9.4 billion in purchases of US currency from HSBC Mexico.
