Foreign passports were no longer being accepted as proof of identification and new accounts could only be opened by Hong Kong ID card holders. Staff members from Hang Seng Bank and Bank of China (Hong Kong) confirmed to the Post that without a Hong Kong ID, foreigners could only open an account here if they had documents proving their ties with the city, such as marriage certificates if their spouses were local residents.

“These are onerous requirements and are not at all useful to the government’s stated intent to cultivate an ecosystem that is conducive to the establishment of start-ups,” Yuen told the Post.

She warned that if the changes were unique to the city, it would hurt Hong Kong’s status as a key regional trading hub.

“We live in a very competitive world, so potential investors have no shortage of economies to enter if Hong Kong proves too difficult to do business in. We have to be mindful of this,” she added.

The chamber also received complaints from its members about the difficulties in opening business accounts in the city and the length of time it took regardless of their past banking history.

“The chamber has previously engaged the HKMA on the issue,” Yuen said. “We are also working with other international chambers in Hong Kong to draw the government’s attention to the adverse impact this is having on legitimate businesses, as well as the overall operating environment in the SAR.

“If the latest measures are self-inflicted these should be subject to review.”

Mike Rowse, former director-general of InvestHK, accused local banks of being too concerned about the risk of getting involved in money laundering and tax evasion.

While Rowse declined to name the banks, he told the Post: “The issues described apply to all banks, and some of the changes are quite recent … The feedback I am getting is that all the corporate service firms are suffering.”

A spokesman for InvestHK, a government department responsible for attracting start-ups to the city, admitted “some foreign investors have raised concerns over the matter”. “InvestHK has been providing relevant information on opening a business bank account to potential foreign investors and facilitating their discussion with banks early,” the spokesman said, adding that the HKMA had been informed.

However, an HKMA spokeswoman said these were not regulatory requirements prescribed by the authority, “nor has the HKMA issued any new requirements over account opening”.

“Each bank develops its own account opening procedures and requirements, taking into account its own appetite for risk, the requirements of its headquarters and internal control systems, and to ensure compliance with relevant legal and regulatory requirements.”

Finance sector lawmaker Christopher Cheung Wah-fung said he had received many complaints about banks making too many intrusive inquiries about clients’ money transfers and business transactions before opening accounts for them.

“This is really disturbing. Clients also need to keep their privacy,” he said. He cited cases of businessmen unable to open accounts because they failed to satisfy banks’ inquiries about their use.

“As we are moving towards globalisation, I don’t understand why local banks still choose to introduce these practices that are detrimental to Hong Kong’s economic development,” he said.

A spokesman for the Hong Kong Association of Banks said the account opening policies and requirements varied from bank to bank.

“It is entirely up to individual banks whether they authorise a new account,” he said, and the association would strive to maintain a “business-friendly operating environment”.