HSBC Shuts Protest-Related Account in Hong Kong
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A corporate account reportedly linked with protest-related activities has been closed by HSBC though it cites regulatory risks.
The account is reportedly being used to raise funds to support protest-related activities covering expenses such as legal, medical and food, according to a «Hong Kong Economic Journal» report. HSBC has given the account holder 30 days to withdraw all its funds.
The report noted that it was in fact inconsistency between the holder’s claimed and actual use of the account that led to its closure rather than political motivation.
As part of our responsibility to know our customers and safeguard the financial industry, we regularly review our customers’ accounts,» said Vinh Tran, a spokesperson for the bank in Hong Kong, without elaborating on the specific matter. «If we spot activity differing from the stated purpose of the account, or missing information, we will proactively review all activity, which can also result in account closure.
In a separate statement, the Hong Kong Monetary Authority also underlined effect risk assessment regarding banking activities, echoing the emphasis on consistency of stated account purpose and source of funding.
Questions & Answers
Q.What reason did HSBC give for closing the account?
What reason did HSBC give for closing the account?
HSBC stated the account was closed due to regulatory risks. The bank noted an inconsistency between the account holder's claimed and actual use of the account, rather than political motivation, led to its closure.
Q.What kind of activities was the closed account reportedly funding?
What kind of activities was the closed account reportedly funding?
The account was reportedly being used to raise funds to support protest-related activities. These funds covered expenses such as legal, medical, and food costs for those involved in protests.
Q.How much time has the account holder been given to withdraw their money?
How much time has the account holder been given to withdraw their money?
HSBC has given the account holder a period of 30 days to withdraw all funds from the closed account. This allows them sufficient time to access their remaining balance.