This undated photo shows the building of the Hong Kong Monetary Authority. (IC)

HONG KONG - Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA) Arthur Yuen Kwok-hang reiterated Thursday that Hong Kong banks have no legal obligation to cooperate with unilateral US sanctions.

Banks should consider the related risk and whether it is fair to their clients, Yuen said at a press conference.

Banks should consider the related risk and whether it is fair to their clients, Yuen said at a press conference, said Deputy Chief Executive of the Hong Kong Monetary Authority Arthur Yuen Kwok-hang

After the United States announced sanctions against some Chinese central government officials and HKSAR officials, the HKMA has said that the US unilateral sanctions are not adopted by the United Nations, thus having no legal effect in Hong Kong.

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The HKMA has also informed all recognized institutions in Hong Kong that they should consider the principle of fairness when making the decision on whether or not to provide services for sanctioned individuals and entities.  

BNO Passport

Meanwhile, Yuen recognized the decision of the Hong Kong Association of Banks that it will not regard the British National Overseas (BNO) passport as a valid personal identity document to open a bank account.

Bank account holders will be required to renew their identity documents if they only provided the BNO passport when opening their accounts, he said. 

Chinese foreign ministry had announced that China will no longer recognize the so-called BNO passport as a travel document and ID document from Jan 31 and reserves the right to take further actions. The government of China's HHKSAR has followed up on the national countermeasures.

A spokesperson of the HKAB said on Thursday that the association has updated the guiding principle for its members with the latest official requirement.

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All banks operating in Hong Kong are members of the HKAB.