In a letter sent earlier this month to US customers who have accounts with HSBC India, the bank said it is terminating "private banking services to US persons and certain trusts and non-operating companies connected to US persons"
Boston: Under the scrutiny of the US authorities for its tax-evading clients, financial services giant HSBC has said it will severe ties with hundreds of its wealthy American clients, including those of Indian-origin, who have accounts in offshore locations, reports PTI.
In a letter sent earlier this month to US customers who have accounts with HSBC India, the bank said it is terminating "private banking services to US persons and certain trusts and non-operating companies connected to US persons," the Wall Street Journal reported.
Customers have about a month to close their accounts, according to the letter.
An HSBC spokeswoman said a team of advisers "will help affected clients through the transition process".
The report quoted a spokeswoman as saying that 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".
Those affected are hundreds of clients with accounts totalling as much as $100 million.
"HSBC is ending the practice of serving wealthy American residents from locations outside the US as a way of cooperating with the US and avoiding the fate of rivals that were fined or threatened with prosecution for assisting tax scofflaws," the report quoted people familiar with the matter as saying.
Federal authorities have also asked HSBC India to send letters to customers encouraging them to come forward to the IRS, the WSJ report said, adding that HSBC has complied with that request via a separate set of letters.
The IRS is offering reduced, yet stiff penalties for US taxpayers with secret offshore accounts who voluntarily report them. This programme is to end on 31st August.
The government said it believed 'many' of these clients "have hidden their accounts from the IRS".
The move comes as the bank faces pressure from US authorities to provide information about account holders who may be evading taxes by using offshore accounts, particularly in India.
Earlier this year, US prosecutors had alleged that HSBC India helped US residents evade federal taxes.
Prosecutors had indicted an Indian-origin New Jersey businessman Vaibhav Dahake on charges that he conspired to evade US taxes by hiding offshore accounts in India maintained by HSBC.
Another Indian-American neurosurgeon was indicted in June by a federal grand jury for allegedly filing false tax returns and hiding more than $8.7 million in offshore accounts.
The Justice Department had in April asked a San Francisco federal court to let the IRS serve a 'John Doe' summons on the Indian unit of HSBC seeking information about possible tax fraud "by people whose identities are unknown".
The objective of Future Xpress and Future Xpress+ is to offer customers a more personalised service and enhanced touch points for speedy motor claims settlement
To simplify the process of motor claim, Future Generali India Insurance has launched Future Xpress and Future Xpress+. The objective of Future Xpress and Future Xpress+ is to offer customers a more personalised service and enhanced touch points for speedy motor claims settlement.
While Future Xpress+ is targeted for those who wish to get their loss assessed and claim finalised on the spot with an option to get their vehicle repaired at a workshop of their convenience, Future Xpress is targeted for those who wish to get their vehicle repaired on priority, at lower costs teamed with personalised service from the insurer.
KG Krishnamoorthy Rao, MD & CEO, Future Generali India Insurance said, "Earlier, claim segmentation on quantum of loss was not available and the survey request and documents verification was an elaborate and exhaustive process. It was mandatory to have the vehicle surveyed pre and post repairs, claim settlement typically happened post repairs and submission of relevant documents to the workshop or surveyor. Both the insurer and the insured had very little control on the entire process of confirming the liability post repairs. Future Xpress and Future Xpress+ simplify the process through segregation of smaller claims that can be treated differently at multiple touch points. These seamless service offerings provide convenience, with significant savings in time and cost."
DSP BlackRock Mutual Fund new issue closes on 20th July
DSP BlackRock Mutual Fund has launched DSP BlackRock FMP-Series 4-3M, a close-ended income scheme.
The investment objective of the scheme is to seek to generate returns and capital appreciation by investing in a portfolio of debt and money market securities. The scheme will invest only in such securities which mature on or before the date of maturity of the scheme. The tenure of the scheme is three months.
The new issue closes on 20th July. The minimum investment amount is Rs5,000.
CRISIL Liquid Fund Index is the benchmark index. Dhawal Dalal is the fund manager.