Jersey banks must pass account details to the UK, says minister

Wednesday 18 March 2015

Jersey’s government expects all banks to have up-to-date information on their customers, according to the politician responsible for the finance industry in the wake of news that thousands of Jersey HSBC accounts held by UK residents face closure.

HSBC announced yesterday that they had written to thousands of UK residents with Jersey accounts to ask them to attend their local branch with a passport and address details to prove where they live, or their accounts would be closed.

The move by Britain’s largest bank comes two-and-a-half years after a whistleblower provided the UK tax authorities with a list of every British client with a Jersey account, complete with their names, addresses and balances. The incident raised headlines around the world over the inclusion on the list of a drug dealer, three bankers facing allegations of fraud and a notorious computer hacker.

This morning Assistant Chief Minister Philip Ozouf – who has political responsibility for the finance sector – said that Jersey law required the Island to pass on details of accounts and balances of UK residents to the UK tax authorities.

He said: “Jersey’s Government expects all banks operating in the Island to know who their customers are and to ensure that this information is up to date.

“We understand that, while HSBC have been carrying out these procedures, this will not necessarily result in the closure of bank accounts of all clients with UK addresses who have legitimate reasons for having a Jersey bank account.

“Jersey’s legislation requires all financial institutions to collect and report the existence, balances and income of all UK residents to the UK Revenue authorities. Our Government’s position on financial crime is very clear. Tax evasion has been illegal in Jersey for many years and the automatic reporting of income between Jersey and the UK, confirmed by the signing of our intergovernmental agreement, puts the Island's position beyond doubt.”