The South China Morning Post quoted a senior Hong Kong official under U.S. sanctions as saying on Dec. 12 that his entire monthly salary goes directly into his wife’s bank account. He described his wife as being responsible for all their household expenses, such as paying his cell phone bill and picking up the tab when they shop or dine out.
The report said the interviewed official was one of 29 current and retired Hong Kong and Chinese officials sanctioned by the United States over Beijing’s implementation of the Hong Kong Area National Security Law. Under the sanctions, the officials’ assets in the United States were frozen, and U.S. banks, businesses and individuals were generally prohibited from dealing with them. Most of the Hong Kong officials were reportedly asked by their banks to close their accounts in October this year, shortly after the State Department warned major financial institutions not to do business with those on the sanctions list or risk facing severe penalties themselves.
Hong Kong’s Chief Executive Carrie Lam, who is under U.S. sanctions, had previously revealed that she no longer had a bank account and had to receive her salary in cash and spend it, with “piles of cash” sitting in a drawer at home. The senior official, who spoke on condition of anonymity, also said he transferred his life savings to his wife’s account after he was forced to close his bank account. Two days after his name appeared on the U.S. sanctions list, a U.S. financial institution in Hong Kong informed him in a letter that he could no longer use his credit cards. His bank then contacted him and “advised” him to close the account.
The official described how it became clear to him during a meeting with the bank that its supervisors were concerned about possible U.S. penalties if they did not stop doing business with him. The official said of the situation the bank faced, “They are also victims under the sanctions and they had no choice but to close my account.” Since then, the officer’s life has changed in many ways, “Without a credit card or electronic payment account, I have to pay in cash or with my Octopus card when I shop or go out to eat, unless I go with my wife.” He said, “I have to rely on her in my daily life.”
The official acknowledged that this inconvenience is a nuisance. The newspaper learned that officials affected by the sanctions have the option of receiving their salaries in cash, transferring them to a family member’s bank account or letting the government keep some of the money until they need it again. A second official who confirmed he no longer had banking services said he and Lam were on the same page, but declined to say whether he also kept cash at home.
A third official said his bank did not ask him to close his account immediately after the U.S. announced the sanctions. “But they restricted some of my banking services, so I couldn’t do online banking, make overseas remittances or use credit cards,” he said. It was only in October that his bank asked him to close his account after the U.S. State Department warned the financial institutions involved. In addition, all officials contacted by the newspaper declined to disclose the name of their bank. But they said a mainland-affiliated bank in the city was involved. They noted that the sanctions affect all financial institutions with business or operations in the United States.
The Hong Kong Monetary Authority said it had received no complaints related to the blacklisted officials and declined to comment on other details. A representative of the authority also said that banks are reminded from time to time to carefully assess all relevant risks in their operations, to take appropriate risk management measures and to strive to treat their customers fairly. When asked how the officers’ accounts were being handled, Standard Chartered said, “We are monitoring the situation closely and are committed to complying with all laws, rules and regulations in the markets in which we operate.” HSBC, Hong Kong’s largest lender, declined to comment, and Bank of China (Hong Kong) did not respond to queries.
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