HSBC is closing accounts in Jersey that are held by non-residents as the bank steps up scrutiny of its clients, a person familiar with the matter said yesterday

The bank is sending letters to such customers to inform them that their accounts could be closed, the source said. People with HSBC Expat Accounts are not affected.

The BBC said yesterday morning that HSBC was closing all accounts in Jersey belonging to customers who live in the UK.

HSBC last month admitted to past failings in compliance and systems at its Swiss private bank after allegations that it helped thousands of customers to avoid tax. That has sparked intense criticism of HSBC, which has said it has overhauled its Swiss business and improved standards across the bank.

Most banks are tightening scrutiny of customers and pulling back from areas where they could fall foul of regulators, which have been handing out big fines for banking indiscretions.

HSBC said in a statement: “While we cannot comment on individual cases, HSBC has implemented numerous standards designed to prevent its banking services being used to evade taxes or launder money, and we have exited clients who do not meet those standards or where we have concerns in relation to tax compliance.”

The bank said it had been reviewing the details on customers, such as data on identity and address, to protect them and society against fraud and other financial crime.