HSBC SHUTS PVT BANKING OPS IN INDIA; JAIL FOR WHISTLEBLOWER
HSBC India said on Friday it was shutting down its private banking business in the country following a worldwide strategic review, making it the third foreign financial services major to get out of this business after Royal Bank of Scotland and Morgan Stanley.
Private banking involves managing the wealth of individuals with net worth of Rs10 crore and higher, and includes allocating the right investment options, handling family office services and bringing in trusteeship services. It is typically vulnerable to laundering suspicions. In 2006, Herve Falciani, an employee of HSBC Geneva, leaked a list that included 600 Indian names alleged to have unaccounted money. Falciani has been sentenced to five years in prison for aggravated industrial espionage, the bank said on Friday, adding it welcomed the ruling.
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