Whistleblowing at HSBC

The Telegraph reports that the tax authorities have obtained details of every British client of HSBC in Jersey after a whistleblower secretly provided a detailed list of names, addresses and account balances earlier this week.

The bank is legally obliged to report to the authorities any suspicions about the source of money deposited in its accounts.

Around the world, HSBC has faced repeated accusations that it was not maintaining sufficient controls over the source of money deposited in its accounts. Money laundering rules demand that banks monitor the source of money and report any suspicions to the relevant authorities. Most banks take an active approach to this duty.

Jahad Rahman, Partner at Rahman Lowe said “the bank has an obligation to report to HMRC and the FSA any suspicions about the source of money deposited in its accounts”. The disclosures made by the whistleblower also raise concerns about the banks internal procedures on Money Laundering.

If the whistleblower is dismissed, then he may have  a claim for automatic unfair dismissal. It is automatically unfair to dismiss a worker because s/he has made a ‘protected disclosure’ of information. A worker also has a right not to be subjected to a detriment (disciplinary action) other than dismissal.

Rahman Lowe Solicitors regularly advise senior executives in the financial services sector on whistleblowing claims and other associated disputes. We also have extensive experience of FSA regulatory matters.

For expert advice, please call our whistleblowing solicitors for a confidential, no obligation discussion on 020 3950 5234 or email info@rllaw.co.uk.