May 30, 2016
HSBC has caused an uproar in Hong Kong after it insisted it had the right to look into its customers’ safe deposit boxes. The bank said that it had the right to dispose of any items it considered illegal or offensive in nature or likely to be deemed a nuisance.
In a letter sent to clients last month, the bank told its customers that under new conditions of its leases for the safe deposit boxes, it had the right to dispose of any items in any way it saw fit and without prior notice or consent if they fell into these categories. South China Morning Post, which reportedly saw a copy of the letter, said that the bank failed to clarify what it meant by “offensive” or “nuisance.” It also did not say under what circumstances bank staff would be able to inspect the boxes. The bank’s spokesman in Hong Kong said that the nature of the locker service meant that it had the potential for “misuse for criminal purposes.” He continued: “HSBC has a clear commitment to defend the integrity of the financial system against activities such as money laundering.” South China Morning Post said that safe deposit boxes are in short supply in Hong Kong and there is currently a long waiting list at most banks. The banks charge up to HK$20,000 (£1,760, €2,312, $2,574) per year for the use of one box.