08:07 AM EDT, 08/16/2024 (MT Newswires) -- HSBC Holdings' ( HSBC ) efforts to build its private banking business in the Middle East are being hindered by departures of senior members and regulatory curbs that will limit the unit's ability to bring in high-profile customers, Bloomberg reported Friday, citing people familiar with the matter.

The Gulf region's royals usually turned to rivals UBS (UBS) and Julius Baer to manage their fortunes rather than HSBC ( HSBC ), a problem the bank has been facing in the region. When HSBC ( HSBC ) poached Aladdin Hangari from Credit Suisse in Qatar last year, the wealth-management executive pledged to double his division's assets under management of roughly $50 billion, the report said.

However, Hangari's first few years in the wealth division are marred by issues including the departure of his predecessor Sobhi Tabbara, which cost the bank $4 billion in assets after his exit angered some wealthy customers, the report said.

Recently, a Swiss regulator ordered HSBC's ( HSBC ) Swiss private bank not to enter any new business relationships with politically exposed persons after it found the firm hadn't made adequate checks on high-risk accounts from such persons, Bloomberg said. The wealthiest individuals in the Middle East are mostly considered PEPs.

HSBC ( HSBC ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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