HSBC blocks Hong Kongers' pensions despite UK settled status

A political row has erupted in the United Kingdom over HSBC's refusal to allow British nationals from Hong Kong to withdraw their pension savings early, even when they have provided proof of permanent settlement in the UK. The bank, which is headquartered in London but derives most of its revenue from Hong Kong and China, has been denying withdrawal applications from people who used indefinite leave to remain (ILR) status to demonstrate they have permanently resettled in Britain. This practice has left thousands of individuals unable to access their life savings, with more than £1 billion in total frozen, of which £978 million is held in HSBC accounts.

The savings are part of the Mandatory Provident Fund (MPF), a compulsory pension scheme in Hong Kong that most workers and employers contribute to. Under normal rules, individuals can withdraw their pension early if they have permanently resettled overseas, but they must provide documentary proof of their right to reside abroad. In 2021, China announced it would no longer recognize British National Overseas (BNO) passports or visas as valid travel documents, which has complicated the process for many Hong Kongers who moved to the UK under the BNO scheme.

The issue was reignited after a survey by the human rights group Hong Kong Watch found that HSBC was also rejecting applications from people who used ILR status, which is issued by the UK Home Office to confirm permanent settlement. Shadow Foreign Secretary Priti Patel, who was Home Secretary when the BNO route was established, has called for an urgent government investigation, stating that the bank's actions are 'wholly wrong' and are being done to 'appease Beijing'. She argued that Labour cannot allow a desire to appease Beijing to override the rights of Hong Kongers.

HSBC has responded by stating that the conditions for early withdrawal are 'a matter of law' and that it has 'no discretion in this matter'. However, the bank has declined to specify which legislation it is relying on, and its response appears to contradict the Hong Kong pension regulator's website, which states that trustees, including HSBC, are responsible for deciding which documents are sufficient to prove an applicant's right to reside abroad. The bank also failed to explain how it would know about a person's previous passport or visa status if it was not submitted as part of the application and is not recorded in ILR documents.

Megan Khoo of Hong Kong Watch condemned the bank's actions, saying it is outrageous that Hong Kongers who have done everything right, built new lives in Britain, gained settled status, and proved their permanent departure are still locked out of their retirement savings. She described this as a hardship inflicted on ordinary families by an authoritarian regime's political retaliation. The situation has drawn widespread criticism from politicians and activists, and there have been calls for the UK government to intervene to ensure that banks do not block the use of legitimate identification documents.