Bank cuts wealth services for Americans outside US

| 21/07/2011

(Reuters): The private banking arm of HSBC will stop offering services to U.S. residents outside the United States as a crackdown on offshore tax evasion makes the regulatory burden of banking around the world increasingly onerous. "After a review of services that can be provided to U.S. clients from locations outside of the U.S., we believe that U.S. clients will be better served by our private banking teams in the United States," the bank said in a statement on Wednesday. A team of advisers will help affected clients through the transition, HSBC said. A source at the bank said the decision was voluntary and not in response to action against it by U.S. authorities.

Last week the U.S. Internal Revenue Service said it would give foreign financial institutions another six months to start complying with a new law to prevent offshore tax evasion by Americans under a phased-in schedule of compliance.

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