Hong Kong leader Carrie Lam’s top adviser has account at US bank closed
The top adviser to Hong Kong’s leader has confirmed his
account at a US bank was closed earlier this year, with the revelation coming
after Washington’s push to sanction Chinese and local officials over the city’s
national security law.
Bernard Chan, convenor of the Executive Council, Chief
Executive Carrie Lam Cheng Yuet-ngor’s de facto cabinet, told the Post on
Tuesday he believed it was because he was deemed to be a “politically exposed
person”.
He had opened the account at the unnamed bank, which also
has branches in Hong Kong, more than a year ago. But it was closed by the
institution, and he got his money back in April.
“I’m sure they closed it because they found out I’m a PEP,
politically exposed person,” Chan said. “I have other bank accounts in the
United States which still function normally.”
Chan’s confirmation came after he told the Financial Times
senior members of the city’s government were finding it increasingly difficult
to bank with foreign institutions, as tensions mount between China and the US
over the city’s future.
Politically exposed people are customers that banks consider
vulnerable to corruption, or who pose a higher risk of money laundering.
Under the Hong Kong Monetary Authority’s guidelines on the
prevention of money laundering, politically exposed persons are “individuals
being, or who have been, entrusted with prominent public functions, such as
heads of state or of government, senior politicians, senior government,
judicial or military officials, senior executives of public organisations and
senior political party officials”.
Regulators are concerned that, especially in countries where
corruption is widespread, such people may abuse their public powers for their
own illicit enrichment through the receipt of bribes, and financial
institutions must have appropriate systems and controls in place to determine
whether a customer is a PEP.
In retaliation for Beijing’s decision to impose a national
security legislation on Hong Kong, US President Donald Trump signed a law and
issued an executive order on July 15 to sanction individuals and banks deemed
to have aided the erosion of Hong Kong’s autonomy. He also put forth an
executive order ending the city’s preferential trading and other privileges.
Foreign individuals or entities determined by the US
secretary of state to fall into this category will be blocked from investing,
transferring, exporting, withdrawing or dealing with any property or interests
in property in the US.
A Post check on the declaration of interests by Lam, her 16
ministers and 16 non-official members of the Executive Council, found that only
Chan and Exco member Laura Cha Shih May-lung had disclosed American assets.
Chan has a self-use property in San Francisco in California
while Cha has a flat through an offshore company for rental purposes. The exact
location of Cha’s property was not indicated.
Chan, who is also a member of the National People’s
Congress, China’s legislature, said at the time that he was not worried.
“I don’t think they would target ranks like mine … as
Beijing would retaliate equally, and I am sure they would suffer more,” Chan
said. “The national security law is a done deal. There is no way that I would
change my stance because of such threats.”
Chan said he had no plans to change or remove his assets
there, which included a small banking account.
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