HSBC faces legal challenge from small businesses

HSBC faces a potential legal challenge from small businesses that have had their accounts frozen as the largest bank listed in the UK attempts to crack down on anti-money laundering. Stewarts Law is seeking to launch a legal challenge on behalf of small companies that allege they have lost money as a result of being unable to conduct business. "Clive Zietman, head of commercial litigation at Stewarts, told the FT:"It is clear that in some cases HSBC's actions caused great harm to a large number of perfectly respectable and innocent businesses. One lawyer involved in the potential claim said some businesses have received compensation from HSBC, but said the amount does not cover the lost opportunity cost, where businesses were "Seriously disrupted". HSBC has attempted to tighten its controls over the past few years, introducing a regime called the 'safeguard' initiative in a move to tighten its 'know your customer' processes and help stymie money laundering.

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