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Lloyds Bank Jersey freezes expat accounts
| Published: | 27 Jun at 6 PM |
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Some 8,000 offshore Jersey-based expat accounts held at Lloyds Bank have now been frozen as part of an attempt to curb money laundering activities.
According to a spokesperson from Lloyds offshore division, the closed accounts represent less than five per cent of accounts held at the bank by expatriates. The decision was made due to account holders’ reluctance to provide full details of their identity, a request which was made some three years ago. According to the bank’s representative, Lloyds has made repeated attempts to get the required information from account-holders without success, resulting in the decision to close the accounts until verification of identity and holdings is received.
According to the bank, the move will also protect genuine account-holders, as it’s now impossible for anyone else to illegally access the frozen accounts held at Lloyds’ international headquarters in Jersey. The international unit offers financial advice in addition to consumer and private banking services to residents of the Channel Islands as well as expatriates and expat businesses. It’s possible the move was taken as a result of the introduction in Jersey, Guernsey and the Isle of Man of far stricter anti-money laundering laws including the setting up of public records of owners of offshore businesses.
In a similar move made this month, Deutsche Bank also requested documents including company ownership papers from 1,000 of its largest corporate clients, stating those who fail to comply with the request will risk losing their access to banking services. In general, the moves are a response to the increasing pressure on offshore financial hubs in an attempt to put an end to financial crime involving dirty money by increasing transparency.
According to a spokesperson from Lloyds offshore division, the closed accounts represent less than five per cent of accounts held at the bank by expatriates. The decision was made due to account holders’ reluctance to provide full details of their identity, a request which was made some three years ago. According to the bank’s representative, Lloyds has made repeated attempts to get the required information from account-holders without success, resulting in the decision to close the accounts until verification of identity and holdings is received.
According to the bank, the move will also protect genuine account-holders, as it’s now impossible for anyone else to illegally access the frozen accounts held at Lloyds’ international headquarters in Jersey. The international unit offers financial advice in addition to consumer and private banking services to residents of the Channel Islands as well as expatriates and expat businesses. It’s possible the move was taken as a result of the introduction in Jersey, Guernsey and the Isle of Man of far stricter anti-money laundering laws including the setting up of public records of owners of offshore businesses.
In a similar move made this month, Deutsche Bank also requested documents including company ownership papers from 1,000 of its largest corporate clients, stating those who fail to comply with the request will risk losing their access to banking services. In general, the moves are a response to the increasing pressure on offshore financial hubs in an attempt to put an end to financial crime involving dirty money by increasing transparency.
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