In the last two months, the HSBC bank in London has closed or frozen accounts that belonged to British companies, such as an e-cigarette seller and an avocado importer, due to a recent clampdown on money laundering.
David Johnston’s business, which imports frozen avocados, received a letter from HSBC to inform him that his foreign bank accounts would be frozen the very next day.
A lot of companies have been impacted by this, with some not able to pay their employees and international suppliers. For instance, this has left Johnston’s business incapable of carrying out cross-border payments for several weeks now.
Whereas other businesses are now enduring substantial financial losses which may lead to them being forced to shut down.
The respective firms that are being affected are all in the small business sector. However, the UK government has stated that it wants to boost the small business sector into a thriving industry after Britain leaves the European Union in March 2019.