HSBC rejects children's charity bank account request over money laundering fears
Group helping Cambodian children says bank cited money laundering fears for refusing account
The Hong Kong branch of a Cambodian charity that helps impoverished children says it was shocked when HSBC rejected its application to open an account because of concerns over money laundering.
The charity, Pour un Sourire d'Enfant (PSE), which means "for a child's smile" in French, was set up 20 years ago. It opened the Hong Kong branch in January.
Its president in Hong Kong, Guillaume Ponticelli, believes the bank failed to carry out any due diligence on its operations, which would have shown that it was a legitimate organisation.
"We take kids from a garbage dump … and help them until they are 20," he said. "We are here to help poor people."
He added that PSE was supported by the French consulate and had worked with the United Nations, so the charity was stunned when HSBC refused its application to open a bank account as it was concerned about the money going to Cambodia.
HSBC has recently been hit by a barrage of money-laundering scandals including leaked documents that exposed how its private banking unit in Switzerland helped clients dodge taxes.