‘A sledgehammer pounding a small nail’: Hong Kong officials urged to act on banks closing accounts in anti-fraud drive

rv1.png

With controversy swirling over moves by banks to close accounts amid pressure to crack down on money laundering, tax evasion and terrorist financing,the American Chamber of Commerce in Hong Kong has urged Hong Kong authorities to set up a working group to figure out long-term solutions to allow easier access to banking services.

Chamber president Richard Vuylsteke made the call as many investors ran into difficulties opening as well as retaining company bank accounts in Hong Kong due to stricter international anti-fraud regulations.

A global trust company, for example, regulated in various jurisdictions around the world and a long-time HSBC client that introduced 250 accounts to the bank every year, was suddenly notified last year that all its main operational accounts held with the bank had been closed with no explanation given.

Read more at SCMP