Hong Kong ATM withdrawals surge
Trend prompts scrutiny as mainland Chinese reportedly using 50 cards at a time
Cash withdrawals at Hong Kong ATMs have surged, prompting scrutiny from monetary authorities, the banking industry and police amid media reports that mainland Chinese are withdrawing hundreds of thousands of dollars using up to 50 cards at a time.
China has battled to curb capital outflows for years. A move that took effect on January 1 caps overseas withdrawals using domestic Chinese bank cards.
Macau last year introduced facial recognition technology at ATMs to target illicit outflows from mainland China, a move that Hong Kong’s central bank said could increase cash withdrawals in the financial centre.
The Hong Kong Monetary Authority (HKMA) declined to provide data on cash withdrawals at ATMs over the past three months but said monthly cash withdrawals using mainland bank cards ranged between HK$2 billion (Dh940 million or $255.7 million) and HK$6 billion in 2017.
“The HKMA is aware of media reports about people using multiple mainland cards to withdraw cash at ATMs in Hong Kong,” the central bank said in a statement, adding that it was “monitoring the situation”. HKMA deputy Chief Executive Arthur Yuen shrugged off media reports that said up to HK$20 billion was being withdrawn from the city’s ATMs each month. “We don’t know where that number comes from. The number of monthly withdrawals, is very volatile but it never reached that high.”