Bank Of Ireland Exits Manx Offshore Accounts

by Carla Johnson, Investors Offshore, London

19 March 2003

The Isle of Man banking subsidiary of the Bank of Ireland has decided that since most of its business is with expatriates worldwide, and predominantly sterling-based, it would stop offering offshore accounts to Irish residents with effect from 31st March, when they will receive a cheque for their outstanding balances.

David Holden of Bank of Ireland said: "We had a rump of business with non-resident accounts in the Isle of Man, and we are closing those accounts down. We did not want to continue to operate this small amount of euro-denominated business out of Ireland.

"Part of the reason is that the benefits that could be gained by holding money overseas have changed."

Letters were sent to those affected in February, but Mr Holden said the bank has not put any alternative plans in place with another offshore provider. Those people wanting to continue holding their savings offshore will have to apply to another bank for the privilege.

Mr Holden agreed that "some people may not be entirely happy" about the news. He said: "If I got a letter out of the blue saying that the bank had decided to close an account, the first reaction would be a level of annoyance because I would have to change things."

He also said he appreciated the irony of Bank of Ireland closing accounts to Irish residents.

Vivienne Starkey of independent financial adviser Equal Partners said: "It is astonishing. I know the Irish are noted for a different take on life and a good sense of humour, but this is taking it too far. You would think if they offer a service to their clients, they might have tried to come to an arrangement with another bank."

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