Banks in Hong Kong have been advised to disclose related property of individuals who have violated the national security law, according to the latest guidelines from the city’s industry association.
Banks should disclose property held by any client who has been arrested or charged for violating the national security law (NSL), according to a guideline from the Hong Kong Association of Banks which was published by and with input from the Hong Kong Monetary Authority.
«The obligation for reporting under the NSL will be triggered when an AI ‘knows' or ‘suspects' that any property is offence related property,» according to the guideline of frequently asked questions.
«'Offence related property' as defined under section 1 of Schedule 3 to the Implementation Rules of the NSL refers to the property of a person who commits or attempts to commit, or participates in or facilitates the commission of, an offence endangering national security; or property used/intended to be used for financing or assisting the commission of an offence endangering national security.»
Post-NSL Banking
NSL was imposed by Beijing to Hong Kong on June 30 last year, prohibiting any activities deemed as subversion, secession, terrorism or colluding with foreign forces with a maximum penalty of life in prison.
Within the banking sector, the most notable NSL-related move occurred in December 2020 when self-exiled lawmaker Ted Hui’s HSBC account was frozen under orders from the Hong Kong police which subsequently resulted in an apology from the bank's CEO Noel Quinn.
