Two US politicians have written a letter accusing HSBC of withholding pension funds belonging to Hongkongers that seek to emigrate.

Two US politicians wrote a letter HSBC chief executive Noel Quinn, accusing the bank of withholding pension funds from Hongkongers seeking early withdrawal for emigration.

«We are concerned that HSBC — in support of the Hong Kong National Security Law — is withholding pension funds from [British National Overseas] (BNO) passport holders and thus contributing to the oppression of people in Hong Kong,» said a «Financial Times» report citing the letter.

The letter is written by Mike Gallagher, US Republican representative and chair of the house China committee, and Alicia Kearns, Conservative MP and head of the UK foreign affairs select committee.

Decision Makers

In addition to expressing concern, Gallagher and Kearns also asked HSBC to provide information on who had authorized the decision to not recognize BNO passports and if board members had been aware.

They also asked if the bank had communicated with China’s foreign ministry or Hong Kong’s government about the security law and the ban on using BNO documents to apply for pension withdrawals.

BNO Passport

In Hong Kong's pension system, residents can make an early withdrawal from their compulsory retirement plan, the Mandatory Provident Fund (MPF), under certain situations such as permanent departure from the city to resettle elsewhere.

The BNO document came under scrutiny after the UK offered a visa scheme with a pathway to citizenship for holders of the passport, as well as other eligible Hongkongers, in the wake of the 2019 pro-democracy protests which led to the enactment of the security law.

«In the case of permanent departure, scheme members are required to provide evidence of the right of abode outside of Hong Kong,» an HSBC spokesperson said. «The [regulator] has published guidance as to what evidence scheme members may rely on and, like all banks, we have to obey the law and the instructions of the regulators.»

Blockage Amount

According to advocacy group Hong Kong Watch, an estimated 2.2 billion British pounds ($2.8 billion) in pensions have been blocked from 96,000 people who moved to the UK in 2021 and 2022.

Since 2020, about 30,000 people who moved abroad have applied for early withdrawals each year, according to government data.