When can Hong Kong banks freeze accounts, and should you worry?

Cases involving former opposition lawmaker and church spark concern over confidence in city’s financial institutions

Financial regulator says mechanisms and legislation in place align with international standards and practices

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Buildings of banking giants in Hong Kong. Photo: AFP

Published: 10:30am, 9 Dec 2020Updated: 11:41am, 9 Dec 2020

The freezing of bank accounts belonging to individuals and a church in Hong Kong over last year’s anti-government protests has sent a ripple effect through the sector, with critics warning investor confidence may be affected in a city renowned for its position as a financial centre.

Accounts under HSBC, Hang Seng Bank and the Bank of China belonging to self-exiled former opposition lawmaker Ted Hui Chi-fung and his family were frozen over the weekend, locking up HK$850,000 (US$109,000).

Hui was accused by police of misappropriating money from a crowdfunding campaign, and saw his bank account, along with those of his parents and wife, frozen after he fled to Britain by way of Denmark last week, jumping bail on a raft of criminal charges related to last year’s protest movement.

Former opposition lawmaker Ted Hui. Photo: Reuters

Separately, at least three HSBC accounts affiliated with the Good Neighbour North District Church have been frozen, a move the organisation called an “act of political retaliation” for its support for protesters during last year’s social unrest.

Police said they were investigating the church over money-laundering and fraud charges, involving how it had received HK$27 million in donations over more than a year but only publicly declared less than a third of the amount.

The church ran a ministry known as “Protect the Children”, which mediated between police and protesters with a bid to de-escalate protest tensions. The church account, and those of pastor Roy Chan Hoi-hing and his wife – who were on sabbatical in Britain – were frozen.