Now churches and charities’ accounts are frozen by HSBC

CHARITIEs for the disabled, African children and church repairs have been threatened by HsBC and seen their accounts frozen in its botched financial crime crackdown.

The lender is desperate to avoid further punishment in the Us after being fined £1.2bn for laundering cash for Mexican drug lords.

But it has introduced aggressive rules which see organisations lose access to their money if they are late completing questionnaires or lengthy phone interviews. Hundreds of small businesses have been affected – as have charities.

HsBC was one of the two most prolific closers of charity accounts in the past two years, according to a survey by Reuters. More than 300 charities have had accounts shut by lenders since 2015, forcing many to close down altogether.

Muslim organisations have been hit hard due to concerns they could be financing terrorism.

Although the problem is thought to be widespread, many charities are reluctant to speak out because they are too frightened of being locked out again.

One victim of HsBC’s heavy-handedness was The Phoenix Children’s Foundation in Packington, Leicestershire, which helps disabled and terminally ill children by letting them pet ponies and offering gardening and music therapy.

It was given £20,000 by American shipping firm United Parcel service but, because the money was paid in dollars, HsBC told the charity to open a foreign currency bank account.

Anita Withers of Phoenix said the bank then asked them a string of complex questions and came within six days of shutting their account. The problem was only avoided when she coughed up £ 200 for an accountant.

‘I’ve banked with HsBC for more than 30 years – they know me and I can’t understand why they wouldn’t help us,’ she said.

Another UK charity, which supports a children’s home in Zimbabwe, said it had temporarily been left £40,000 out of pocket when HsBC froze its accounts.

In a letter seen by the Mail, staff said 140 children were ‘going cold and hungry’ as a result and staff had ‘laughed’ at their predicament. The charity – whose problem has since been resolved – asked not to be named for fear of repercussions.

A spokesman for HsBC said: ‘Although we have been expanding our team of specialist bankers supporting the charity sector, we apologise to those who have experienced difficulties.’

He urged the Zimbabwe children’s group to get in touch with further details, saying: ‘We take reports of inappropriate behaviour very seriously, and will investigate this.’