On June 19, The League of Social Democrats (LSD) sent an open letter to HSBC’s CEO Noel Quinn, asking him and HSBC to explain the unwarranted cancellation of the bank accounts of LSD and some of its members.
In February, HSBC notified the LSD of the termination of three of its bank accounts. At the time, HSBC said it had decided to close the accounts after a thorough review but did not give specific reasons, saying only that it had a responsibility to review bank accounts regularly “to protect customers and the financial system.”
In May, HSBC sent another letter, informing the group that the bank would maintain its decision to terminate the crowdfunding platform’s account. In addition, several members’ bank accounts at HSBC, Hang Seng Bank, and Bank of China were also canceled.
On June 6, five LSD members gathered at the head office of HSBC Bank Headquarters in Central to protest against the bank closing all LSD’s accounts without giving any reason.
The group members criticized HSBC and its practice as “soft political persecution” and damaging the image of Hong Kong as an international financial hub.
On June 19, the LSD said the group had not received any response from HSBC.
Therefore, the group emailed Noel Quinn, chief executive of HSBC Bank, reiterating its stance and asking for an explanation.
In its open letter, the LSD stated democratic parties, non-governmental organizations, newspapers, and trade unions had been forced to shut down amid suppression under the implementation of the National Security Law in Hong Kong.
The LSD said, despite the current difficult situation, the League of Social Democrats is still working hard to maintain its livelihood and continues to speak out for the silenced.
However, the LSD argued, by closing LSD’s only avenue for receiving public donations through account closure, HSBC would directly force the closure of the few remaining pro-democracy parties in Hong Kong and that HSBC’s decision will restrict the freedom of speech and choice of Hong Kong people, and violates HSBC’s commitment to the UN Guiding Principles on Business and Human Rights.
Speaking to HKFP, Dickson Chau, vice-chairperson of the civil group, said the LSD did not plan to open accounts at other banks as a group as he thought it would not be possible after other financial institutions also shut down their bank accounts.
The non-profit group also points out that HSBC’s cancellation of its 17-year-old account is an issue of public interest, which requires a clear explanation.
Hoping for a transparent and public explanation, the LSD urges the bank to reverse its decision on the account cancellation. HSBC should also prove its commitment and promise to protect its customers’ best interests and that political motives do not sway HSBC.
It is not the first time pro-government HSBC has been criticized for its “lock and fold” of the bank accounts of pro-democracy activists involved in the Hong Kong democratic movement.
On Aug. 27, 2020, former Apple Daily founder and jailed democracy activist Jimmy Lai Chee-ying and its former CEO Cheung Kim-hung told the media they could not withdraw money from their HSBC accounts. At the time, Lai’s assistant Mark Simon, also stated that HSBC froze Jimmy Lai’s personal and business bank accounts without notice or explanation.
On Nov. 19, 2019, HSBC sparked controversies after terminating the bank account of the non-profit crowdfunding platform Spark Alliance without explanation. Spark Alliance aided protesters and arrestees during the anti-extradition movement in 2019. It relied on public donations to its previous HSBC account to support its work.
On Dec. 21, 2019, HSBC posted a statement on Facebook, saying that the bank “understood public concern over account closure.” It reiterated at the time that its decision to close the account in November 2019 was not “politically motivated” but the customer’s failure to meet the bank requirements.
On Sept. 19, 2022, PayPal announced its final decision to terminate the PayPal account of the LSD upon reviewing its account, citing “excessive risks.”
