HSBC cuts ties with US clients ahead of FATCA

HSBC has become the first bank to turn away US clients who bank offshore in a move to appease the US Inland Revenue Service's FATCA laws, due to come into force in 2013.

The global banking giant will sever ties with wealthy American clients who bank offshore, as US prosecutors have increased pressure on the bank to provide information on account holders, to prevent tax evasion, the Wall Street Journal reports. A spokesperson said HSBC will "no longer offer wealth-management services to US resident private clients from locations outside the US," and that American clients "will be better served by our private banking teams in the United States." The move will affect hundreds of clients with accounts totalling as much as $100m, the WSJ reports. The Fo...