Arab bank woes story draws swift reactions

Bonnie Chen

Businessmen and professionals resonated with an exclusive story in The Standard on Arab companies having a hard time dealing with local banks.

It was reported that a local bank, for example, has frozen the account of a company selling seafood from the Persian Gulf to Greater China by having police issue a "letter of no consent" without giving a reason, according to Arab Chamber of Commerce and Industry president Edwin Hitti.

Hitti also said it is difficult for individual Arabs to open bank accounts in Hong Kong or for people living in Arab countries to obtain Hong Kong visas.

Among the reactions, some said banks have too much power on freezing accounts.

An insider from a top chamber of commerce doubted if Hong Kong can attract Middle East capital without creating a friendly business environment to accommodate Muslim businessmen and investors.

A Hong Kong law firm said a bank declined to accept funds in UAE dirham sent by a Dubai law firm.

A retired banker, while recognizing the problem, empathized with lenders, saying they worry about US sanctions. He said banks would not risk taking money from the Middle East when there are plenty of business opportunities from the mainland and the Far East.

Yet, he added, the government and the regulator should be aware that some regulations of the US sanctions do not apply to Hong Kong.

A university insider, on the other hand, agreed it is difficult for individuals from the Middle East to open a bank account, rent a home and study in Hong Kong.

bonnie.chen@singtaonewscorp.com