HSBC Mexico Closes Accounts: How to Avoid It

Mexico City, Mexico — HSBC Mexico has confirmed it is closing certain customer accounts as part of its internal review processes to comply with anti-money laundering regulations. The move has raised concerns among clients, prompting the bank to clarify the reasons behind the closures and steps customers can take to avoid disruptions to their banking services.

Routine Compliance Measures, Not Mass Closures

HSBC emphasized that the account terminations are not part of a large-scale or extraordinary measure but rather routine protocols also implemented by other financial institutions in Mexico. In an interview, HSBC Mexico CEO Jorge Arce explained the criteria for account closures, affected customers, and preventive measures.

Why Is HSBC Closing Accounts?

The primary reason for account closures is customers failing to respond to requests for additional information. This typically occurs when the bank detects unusual transactions or inconsistencies in a client’s financial profile.

“If a person opens an account with a certain profile but later starts receiving significantly higher income without notifying the bank, this triggers alerts,” Arce stated. In such cases, if the source of funds cannot be justified or the customer does not communicate with the bank, the account may be closed.

Who Is Considered a “High-Risk Customer”?

A customer is classified as high-risk if their banking activity deviates from their established profile. Examples include:

• A consistent monthly salary of $30,000 suddenly receiving a $2 million deposit.
• Income that does not align with the customer’s registered economic activity.
• Failure to respond to the bank’s requests for documentation.

“If you can prove you sold a property or inherited money, there’s no issue. But if you don’t respond or justify the transactions, the account may be closed, and authorities could be notified,” Arce warned.

Are More Accounts Being Closed Than Usual?

HSBC clarified that the proportion of closures has not increased. While the total number of affected customers has risen due to the bank’s growing client base, the rate remains within normal parameters. The bank also denied any connection between these measures and recent alerts issued by the U.S. Treasury Department against other Mexican financial institutions, including CIBanco, Intercam, and Vector.

How to Prevent Account Closure

Customers can avoid disruptions by keeping their financial information up to date. Key steps include:

• Notifying the bank of significant changes, such as a new job, business venture, inheritance, or major asset sale.
• Promptly responding to requests for additional documentation.

HSBC noted that while the issue has drawn attention due to its recent actions, anti-money laundering protocols are legally mandated for all Mexican financial institutions. If a bank cannot verify the source of a customer’s funds, it is required to take action, ranging from account reviews to suspensions or closures.

The bank reiterated its commitment to transparency and regulatory compliance while urging customers to maintain open communication to avoid service interruptions.