HSBC’s Swiss private banking unit is cutting ties with more than 1,000 high-net-worth clients from the Middle East, following growing regulatory scrutiny from Swiss authorities.
The move marks one of the most significant restructurings by a major global bank in response to compliance pressure. Many of the affected clients — primarily from Saudi Arabia, Qatar, Lebanon, and Egypt — hold assets exceeding $100 million and have been flagged internally as higher-risk profiles, according to reports first published by the Financial Times.
The decision comes in the wake of intensified oversight by Switzerland’s financial watchdog FINMA, which previously sanctioned HSBC for failing to meet anti-money laundering standards. An earlier investigation revealed the bank had mishandled politically exposed persons’ (PEP) accounts and processed suspicious cross-border transactions worth hundreds of millions of dollars.
FINMA had already barred the bank from onboarding new PEP clients, demanding a comprehensive overhaul of internal risk controls. The Middle East client exits appear to be part of a broader effort by HSBC to reduce its exposure to regulatory risk.
Sources familiar with the matter say HSBC has begun notifying affected clients and advising them to relocate their assets elsewhere. The process, expected to wrap up within six months, involves a dedicated transition team guiding clients through the offboarding.
While the bank has not confirmed exact numbers, insiders suggest the total value of assets involved could reach into the billions.
Despite the shake-up, HSBC insists this is not a withdrawal from the Middle East market. In a statement, Barry O’Byrne, CEO of HSBC Global Wealth, said the bank remains committed to serving clients across the region and that Switzerland continues to play a “critical role” in its global wealth strategy.
The bank describes the move as part of a global restructuring effort, first outlined in late 2024, which aims to sharpen its focus on select client segments and reduce risk in sensitive jurisdictions.
