Shadow Foreign Secretary Priti Patel has called for an urgent government investigation into HSBC's blocking of hundreds of millions of pounds in pensions owed to British nationals from Hong Kong. A human rights group has accused the UK-headquartered bank of denying withdrawal applications from individuals who used indefinite leave to remain (ILR) status to prove they had permanently resettled in Britain.
Patel stated that the situation is "wholly wrong" and suggests the bank's actions are an attempt to "appease Beijing." Over £1 billion in savings has been frozen following the introduction of national security laws in Hong Kong, which prompted an exodus of people holding British National Overseas (BNO) passports to the UK. HSBC oversees £978 million of these frozen savings, held within the Mandatory Provident Fund (MPF), Hong Kong's compulsory pension scheme.
While individuals can withdraw their MPF early if they have permanently resettled overseas, they must provide documentary proof of their right to reside abroad. China announced in 2021 that it would no longer recognize BNO passports or visas as valid travel documents. A survey by Hong Kong Watch found that HSBC has been denying withdrawals even when applicants present ILR status, a document issued by the UK Home Office proving permanent settlement in Britain. ILRs were not mentioned in Beijing's 2021 announcement regarding BNOs.
"It is outrageous Hong Kongers who did everything right – who built new lives in Britain, gained settled status, and proved their permanent departure – are still locked out of their retirement savings," said Megan Khoo of Hong Kong Watch. "This is not a technicality, but a hardship inflicted on ordinary families by an authoritarian regime’s political retaliation."
When questioned about rejecting withdrawals using ILRs, HSBC stated that the rules for early withdrawal are "a matter of law" and that the bank "has no discretion in this matter." However, the bank did not specify which legislation it was using, nor how it would be aware of a person's previous passport or visa status if not provided in an application, especially since ILRs do not record such details.
This stance appears to contradict information on the Hong Kong pension regulator's website, which indicates that MPF trustees, including HSBC, are responsible for determining which documents suffice to prove an applicant's right to reside abroad. Patel, who served as Home Secretary when the BNO route was established, urged the government to "urgently investigate and act to ensure banks are not blocking use of legitimate ID" and stated that the Labour party "cannot allow a desire to appease Beijing to get in the way of Hong Kongers’ rights."
An HSBC spokesperson reiterated that early withdrawal conditions are a legal matter, not set by the trustee, and that there are significant penalties for non-compliance. The spokesperson added that pension benefits remain in the system, continue to accrue, and can be withdrawn once eligibility conditions are met, including upon retirement.