Hong Kong HSBC and Citibank bankers threatened with prison if they deal with billionaire Jimmy Lai’s accounts
Hong Kong HSBC and Citibank branches have been sent letters by the city’s security chief over billionaire media tycoon Jimmy Lai’s accounts – threatening up to seven years in prison, according to Reuters.
The media moguls’ assets, including his stake in publisher Next Digital and local bank accounts, have come under fire in recent weeks through Hong Kong’s controversial national security law.
The action, by secretary for security John Lee, suggests that the former British colony’s national security law has crept into the banking system’s top tiers for the first time.
One financial adviser of the billionaire said that while the funds in the accounts were relatively small, they represented the local Hong Kong management end of an international network of banking that covers his private wealth.
The targeted advisers are currently seeking guidance on how to challenge the freeze, while the letters by the security secretary have stoked concern about the broader investment environment in the city.
Despite the turbulent politics, shares in Next Digital soared an eyewatering 330 per cent when it resumed trading today after authorities last week froze Lai’s 71.26 per cent stake – worth $45m at the time.
Just two weeks ago the Taiwan Apple Daily, owned by Next Digital, stopped printing due to harsh business conditions in the city.
A Security Bureau spokesman said as Lai’s judicial proceedings were still happening, “it is not appropriate for us to disclose operational details.”
“Suffice to say, endangering national security is a very serious crime.”
Banking regulator, the Hong Kong Monetary Authority (HKMA), said banks had to cooperate with law enforcement agencies in criminal investigations, which included the freezing of assets under relevant laws.
“The HKMA has no role in criminal investigations and we are not in a position to comment,” it said.